Gas Malaysia has received a letter to proceed from the Energy Commission Malaysia for the development of a liquefied natural gas (LNG) regasification terminal in Yan, Kedah.
The project will be developed as an offshore floating storage and regasification unit (FSRU) located west of Pulau Bunting, with a planned capacity of up to 6 million tonnes per annum (Mtpa). The total investment is estimated at MYR2 billion to MYR3 billion (approximately USD510 million to USD765 million).
The approval is subject to regulatory conditions that must be fulfilled within a specified timeline before full project development can proceed.
The new terminal is expected to strengthen Malaysia’s gas supply infrastructure amid rising domestic energy demand. Currently, the country operates two LNG import terminals—an offshore FSRU in Melaka (3.8 Mtpa, operational since 2013) and an onshore terminal in Pengerang (3.5 Mtpa, operational since 2017). Malaysia imported around 7.5 Mt of LNG in 2024 while continuing to remain a major global LNG exporter.