The Board of Directors of Gas Malaysia Berhad ("Gas Malaysia" or "the Company") wishes to announce that the Company has received a Letter to Proceed ("LTP") from the Energy Commission of Malaysia ("EC") in relation to the Liquefied Natural Gas ("LNG") regasification terminal project in Yan, Kedah ("RGT Yan" or "the Project").
1. DETAILS OF THE LTP
The LTP represents a significant development which enables the Project to progress into the next phase of implementation, including detailed engineering, financing progression, site preparation and other related preparatory works.
Located in Yan, Kedah, to the west of Pulau Bunting, RGT Yan is envisaged as an offshore Floating Storage and Regasification Unit with a planned regasification capacity of up to 6 MTPA. The Project is currently estimated to involve a development cost of approximately RM2 billion to RM3 billion, and the manner of funding for the Project will be determined at a later stage.
The LTP is subject to certain conditions imposed by the EC, which the Company is required to fulfil within the stipulated timeline, in order to progress the development of the Project.
For the avoidance of doubt, the issuance of the LTP does not constitute a final investment commitment for the Project and remains subject to, among others, the fulfilment of the conditions stipulated by the EC.
2. FINANCIAL EFFECTS
The LTP is not expected to have any immediate material effect on the share capital and substantial shareholders' shareholdings of Gas Malaysia.
The Project is expected to contribute positively to the future earnings of the Gas Malaysia Group upon its commissioning and completion.
3. RISKS IN RELATION TO THE PROJECT
Gas Malaysia does not foresee any exceptional risks other than the normal risks associated with projects of this nature, including but not limited to:
- project execution and construction risks;
- operational and technical risks; and
- changes in economic or market conditions.
Gas Malaysia will take the necessary steps to mitigate these risks in the execution of the Project.
4. APPROVALS REQUIRED
The LTP is not subject to the approval of the shareholders of Gas Malaysia.
5. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
None of the Directors and/or major shareholders of Gas Malaysia and/or persons connected with them have any direct interest in the LTP.
6. STATEMENT BY THE BOARD OF DIRECTORS
The Board of Directors of Gas Malaysia is of the opinion that the acceptance of the LTP is in the best interest of the Company and its shareholders.
7. FURTHER ANNOUNCEMENT
The Company will make the necessary announcement in accordance with the requirements of Bursa Malaysia Securities Berhad upon the execution of the definitive agreement or when further material information in relation to the Project becomes available.
This announcement is dated 18 March 2026.