Gas Malaysia, Tokyo Gas and VTTI to develop 6 MTPA FSRU regasification terminal in Yan, Kedah
- Planned offshore FSRU regasification terminal off Pulau Bunting, Yan, Kedah, with capacity up to 6 million tonnes per annum (MTPA).
- Estimated development cost between RM2 billion and RM3 billion.
- Energy Commission issued a Letter to Proceed in March 2026; project is now advancing technical, commercial and regulatory workstreams toward a Final Investment Decision (FID).
- Joint Development Agreement signed between Gas Malaysia (project lead), Tokyo Gas and VTTI.
Project overview
Gas Malaysia, Tokyo Gas and VTTI have signed a Joint Development Agreement to develop RGT Yan, an offshore Floating Storage and Regasification Unit (FSRU) located off Pulau Bunting in Yan, Kedah. The terminal is positioned as a new LNG entry point for northern Peninsular Malaysia to enhance supply flexibility and diversify gas sources.
Capacity and cost
The proposed FSRU-based regasification terminal is expected to have capacity of up to six million tonnes per annum (MTPA). Estimated development cost is between RM2 billion and RM3 billion.
Partners and roles
Gas Malaysia will act as project lead, leveraging domestic market knowledge and infrastructure experience, Tokyo Gas will contribute LNG procurement and regasification expertise, and VTTI will provide terminal development and operations experience.
Timeline and expected impact
Following a Letter to Proceed from the Energy Commission in March 2026, the project is moving into technical, commercial and regulatory workstreams ahead of an FID. Once completed, RGT Yan is expected to strengthen energy security, support northern regional economic growth and enhance national gas-supply resilience.
Source: VTTI