PETRONAS Gas Berhad (PGB) has entered into a binding heads of agreement (HOA) with TNB indirectly owned Integrax Berhad to jointly develop a third regasification terminal (RGT-3) in Lumut, Perak.
PGB said the agreement formalises a collaboration between the two parties through a special purpose vehicle (SPV) that will be incorporated once a shareholders’ agreement is finalised.
The proposed RGT-3 facility will be developed using a Floating Storage Regasification Unit (FSRU) concept, allowing LNG storage and regasification processes to be conducted offshore. Regasified LNG will then be transported through a connecting pipeline into Peninsular Malaysia’s gas network.
The terminal is designed with LNG storage capacity of 170,000 cubic metres and a regasification send-out capacity of 500 million standard cubic feet per day (MMscfd).
PGB said the terminal’s capacity will be underwritten in stages by TNB Fuel Services Sdn Bhd, with full capacity expected to be committed from 2030 onwards.
Integrax, a wholly owned subsidiary of TNB Power Generation Sdn Bhd, has been designated as the joint venture partner for the ownership and operation of RGT-3. Through its subsidiary, Lekir Bulk Terminal Sdn Bhd, Integrax has more than 25 years of experience in terminal operations serving the Sultan Azlan Shah power station in Manjung, Perak.
According to PGB, the HOA establishes the preliminary terms governing both parties’ investment participation and relationship in the joint venture vehicle.
The company noted that the agreement will not have any material impact on its issued share capital, shareholder structure or net assets per share for the financial year ending Dec 31, 2026.
PGB’s board audit committee and board of directors have endorsed the transaction, stating that the agreement is in the company’s best interests, conducted on normal commercial terms and not detrimental to minority shareholders.
The development of RGT-3 is expected to enhance Malaysia’s gas import and regasification capacity, supporting long-term energy security and ensuring reliable fuel supply for the power generation sector as demand for natural gas continues to grow.
