KUALA LUMPUR, June 4 — Tenaga Nasional Bhd (TNB), via its indirect unit Integrax Bhd, and Petronas Gas Bhd (PetGas) have signed a heads of agreement to jointly develop a third regasification terminal (RGT-3) in Lumut, Perak.

The parties will set up a special purpose vehicle following the execution of a shareholders’ agreement to develop the project, they said in separate Bursa Malaysia filings today.

“The RGT-3 will be developed based on the floating storage regasification unit (FSRU) concept, whereby the liquefied natural gas (LNG) storage and regasification processes will be carried out on the FSRU,” they said.

Both companies said the regasified LNG will then be transported via a connecting pipeline from RGT-3 onshore and berthing facilities to the Peninsular gas utilisation system.

According to PetGas, the RGT-3 is designed with an LNG storage capacity of 170,000 cubic metres (m3) and regasification send-out capacity of 500 million standard cubic feet per day (MMscfd).

Its capacity is underwritten by TNB Fuel Services Sdn Bhd in stages, with full capacity underwritten from 2030 onwards.

TNB said the development of RGT-3 is currently planned to be funded through a combination of debt and equity. — Bernama