French contractor Technip Energies has secured a prized front end engineering and design contract for Gas Malaysia’s offshore regasification terminal (RGT) Yan project that includes a floating storage and regasification unit (FSRU) in Kedah, Malaysia.
Gas Malaysia is pressing ahead with the liquefied natural gas import project in northern Malaysia that could potentially reshape the region’s gas supply landscape, with its planned Kedah FSRU targeting 6 million tonnes per annum of regasification capacity.
Technip Energies said in a social media post on Tuesday that the project’s workscope includes “evaluating best regasification terminal configurations before completing the full FEED for the selected solution, establishing the project’s technical basis and supporting its progression towards final investment decision (FID).”
The precise contract value was not disclosed by Technip Energies.
The RGT-Yan FSRU led development recently onboarded international development partners Japan’s Tokyo Gas and Netherlands-headquartered VTTI through a joint development agreement signed in May.
In addition to the FSRU, the project also includes marine infrastructure, a subsea gas pipeline and an onshore receiving facility, Technip Energies noted.
The estimated 2 billion to 3 billion ringgit ($492 million to $738 million) development has been promoted as a strategic move towards greater energy security for the Southeast Asian country and enhanced economic development of the northern areas.
The project is targeting start-up in 2029, feeding into the national oil and gas giant Petronas’ peninsular gas utilisation (PGU) network to supply the domestic market.
Gas Malaysia earlier said that the project is advancing into its development phase, including technical, commercial and regulatory workstreams, and progressing towards an investment decision.
The project also envisages transforming Gas Malaysia from a domestic gas distributor into an energy infrastructure player.
Upstream has reached out to Gas Malaysia for comment.
“Join the companies that smart energy professionals follow – because when you’re featured on GEN, the industry pays attention.”