Tenaga Nasional Bhd is reportedly in early discussions to participate in Petroliam Nasional Bhd (PETRONAS)’ planned regasification terminal (RGT) project in Lumut, Perak, according to sources.
One option under consideration is for Tenaga — the largest natural gas offtaker in Peninsular Malaysia’s power sector — to take a significant stake in the project. Another possibility is a joint venture with PETRONAS Gas Bhd, PETRONAS’ gas infrastructure arm, which currently owns and operates key gas facilities in the country.
The proposed Lumut RGT is expected to have a capacity of about 500 million standard cubic feet per day (mmscfd), with development targeted to begin by late 2028. However, details on Tenaga’s potential investment size or final participation remain unclear, and both parties have yet to officially comment.
The project aligns with Tenaga’s strategy to secure access to critical gas infrastructure, particularly as demand for liquefied natural gas (LNG) rises. While Tenaga is a major gas consumer, it currently lacks direct exposure to regasification assets — a gap this potential investment could address.
For PETRONAS, bringing Tenaga on board as a partner could help ensure stable long-term utilisation of the facility, given Tenaga’s significant role in electricity generation. Gas-fired plants accounted for nearly 15% of Peninsular Malaysia’s power supply in 2025, and the utility continues to expand its gas-based capacity pipeline.
Industry estimates suggest the Lumut RGT could cost around RM3 billion. Early concepts include either a floating storage and regasification unit (FSRU) or a fully onshore terminal, although shallow waters in Lumut may pose engineering challenges that could affect project costs and feasibility.
The development comes amid expectations that Malaysia’s LNG demand will outpace existing regasification capacity by as early as 2029. PETRONAS had secured government approval for the Lumut project in 2024 as part of efforts to strengthen the country’s gas supply infrastructure.
In parallel, other RGT projects are also in the pipeline, including a proposed facility in Yan, Kedah by Gas Malaysia Bhd, highlighting growing demand for LNG infrastructure to support future energy needs.
