Gas Malaysia receives approval to advance Yan LNG regasification project

Gas Malaysia Berhad has received a letter to proceed from the Energy Commission of Malaysia for its proposed liquefied natural gas (LNG) regasification terminal in Yan, Kedah, allowing the project to advance into the next phase of development.

The company said the letter enables progress on detailed engineering, financing activities, site preparation and other preparatory work for the project, known as RGT Yan.

The terminal is planned as an offshore floating storage and regasification unit (FSRU) located west of Pulau Bunting, with a regasification capacity of up to 6 million tonnes per annum (Mtpa). Total development costs are currently estimated between RM2 billion and RM3 billion, with funding arrangements to be determined at a later stage.

Gas Malaysia said the letter to proceed is subject to conditions imposed by the Energy Commission, which must be met within a specified timeline for the project to continue progressing. The company noted that the approval does not represent a final investment decision and remains contingent on fulfilling those requirements.

The company said the project is expected to contribute positively to future earnings once completed and commissioned, although it is not expected to have any immediate material impact on share capital or shareholder holdings.

Gas Malaysia identified typical project-related risks, including construction execution, operational and technical challenges, and potential changes in economic or market conditions. The company said it plans to take appropriate steps to mitigate these risks during project execution.

The letter to proceed does not require shareholder approval, and the company said none of its directors or major shareholders have a direct interest in the project.

Gas Malaysia said it will provide further updates in line with Bursa Malaysia requirements once definitive agreements are executed or additional material information becomes available.