KUALA LUMPUR: E&H Energy Sdn Bhd’s gas regasification terminal project in Kemaman, Terengganu, is being developed to address Malaysia’s growing energy demand by improving accessibility and ensuring a stable supply of liquefied natural gas (LNG) for industries, power plants and emerging sectors such as data centres.
The project, an independent multi-user and multi-services LNG import and regasification terminal, is also poised to play a pivotal role in Malaysia’s evolving gas market.
By aligning with the government’s Third-Party Access (TPA) framework, RGT Kemaman will foster a more competitive and dynamic gas market while ensuring a secure and reliable energy supply for the nation.
“As part of the TPA objectives, it will be independently operated and managed. That will allow multiple TPA licensees to subscribe to the products and services offered at the terminal.
“By facilitating greater access to gas supplies, the project will not only enhance competition but also stimulate economic growth and industrial development across Malaysia,“ he told delegates at a memorandum of understanding exchange ceremony between MBI Terengganu and E&H Energy today.
E&H Energy, as the project owner and integrator, is collaborating with the Terengganu state government and negotiating with other strategic interested parties to jointly develop RGT Kemaman.
The company has secured a long-term LNG supply of 6 million tonnes per annum for import into Malaysia starting in 2028. The development of the LNG import terminal is critical to facilitate the import, storage and regasification of the contracted LNG from West Coast Mexico and other potential sources, with the capability to re-export LNG.
The regasified LNG will be delivered to users either in gaseous form through the Petronas Peninsular Gas Utilisation (PGU) pipeline, via the LNG virtual pipeline system using trucks, or in liquefied form through the East Coast Rail Link.
E&H Energy will develop and operate the LNG import terminal, designed for efficient operations and rapid construction within 30 months. The secured site, located less than 10km from the Petronas PGU, offers a water depth exceeding 14 metres, making it suitable for large-scale LNG operations.
Engineering work for the permit approval process is under way, including approvals from the Energy Commission (ST) and the Terengganu state government.
A final investment decision is expected by the end of 2025, depending on approvals and sufficient market interest from TPA licensees and gas users.
RGT Kemaman is expected to become operational by 2028. The terminal’s anchor end customer will be the nation’s power sector.
Additionally, E&H Energy is prepared to supply Malaysia with up to 1.6 million tonnes of LNG per annum from 2025 to 2030 through spot cargoes or short-term supply contracts at competitive tariffs.
Key milestones for the project include securing a strong market response, with multiple shippers expressing interest in underwriting capacity due to the terminal’s flexibility in offering a range of services.
The project will adhere to all policies and regulations set within the TPA framework, while ongoing discussions with financiers, bankers, and private equity firms who have shown keen interest will ensure the necessary funding support for this private LNG terminal initiative.
Elaborating on the key benefits of RGT Kemaman, E&H Energy CEO Datin Hanim Bukhari said the project should be seen as expanding the country’s LNG import and regasification capabilities.
“This initiative is our contribution from the private sector to achieving the ‘Sustainable Clean Energy 2050’ mission.
“Starting in 2028, we will offer energy from RGT Kemaman in LNG or gaseous form.
“We are confident with our business model as an independent multi-user, multi-services terminal, and this proposed project serves as an enabler and a platform for more active involvement of TPA licensees in expanding their gas market activities,“ she said.
