Petronas Gas Bhd (PetGas) has received a notification letter from the Ministry of Economy dated April 30, 2026, to undertake the development of the Third Regasification Terminal in Lumut, Perak (RGT-3), which will be based on a floating storage and regasification unit (FSRU) concept.
In a filing with Bursa Malaysia, the group said it is also exploring the possibility of jointly developing the project with a strategic partner, as part of efforts to optimise project execution and strengthen capabilities.
PetGas noted that it had conducted detailed technical and commercial assessments on the development of new gas infrastructure, taking into account long-term gas supply and demand projections for Peninsular Malaysia. Following these evaluations, the company submitted a proposal to the Energy Commission for the RGT-3 project, targeting commercial operations by the second quarter of 2029.
Under the proposed design, the RGT-3 will utilise an FSRU system, where liquefied natural gas (LNG) storage and regasification activities are carried out offshore. The regasified LNG will then be transported via a connecting pipeline from the offshore facility and its onshore berthing infrastructure into the Peninsular Gas Utilisation (PGU) system. This project will mark Malaysia’s first deployment of an FSRU-based regasification terminal.
The facility is planned with an LNG storage capacity of 170,000 cubic metres and a regasification capacity of up to 500 million standard cubic feet per day (mmscfd). Once operational, the terminal is expected to support additional gas demand equivalent to approximately 3.5 gigawatts of power generation capacity in Peninsular Malaysia.
PetGas added that the project will be regulated by the Energy Commission, with tariffs to be determined under the Incentive-Based Regulation (IBR) framework.
The development of RGT-3 is in line with PetGas’ long-term strategy to expand and strengthen its gas and utilities infrastructure portfolio. The project is expected to enhance the capacity, resilience and flexibility of Malaysia’s gas supply network, ensuring it can meet evolving energy demand while supporting the country’s broader economic and industrial growth.
