1. INTRODUCTION
PETRONAS Gas Berhad ("PGB" or "Company") wishes to announce that on 30 April 2026, the Company received a notification letter from the Ministry of Economy for the Company to develop the Third Regasification Terminal in Lumut, Perak ("RGT-3") based on Floating Storage & Regasification Unit ("FSRU") concept.
2. BACKGROUND
The Company had undertaken technical and commercial assessments on the development of new gas infrastructures required based on Peninsular Malaysia gas supply and demand forecast.
Based on the assessments, the Company had submitted to Suruhanjaya Tenaga a proposal for the development of a new LNG Regasification Terminal in Lumut, Perak ("RGT-3") with target to achieve its Commercial Operation Date ("COD") in Quarter 2, 2029.
With this notification letter, the RGT-3 will be developed based on Floating Storage & Regasification Unit ("FSRU") concept, whereby the LNG storage and regasification processes will be on the FSRU. The regasified LNG will then be transported via a connecting pipeline from RGT-3 onshore & berthing facilities to the Peninsular Gas Utilisation ("PGU") system. This project will represent the first deployment of an FSRU in Malaysia.
RGT-3 is designed with LNG storage capacity of 170,000 m3 and regasification send-out capacity of 500 MMscfd. It is expected that RGT-3 will be able to support additional gas requirement for approximately 3.5 GW power plant capacity in Peninsular Malaysia.
This project will be regulated by Suruhanjaya Tenaga and tariff to be determined based on Incentive-Based Regulation (IBR) mechanism.
The Company is also exploring to jointly develop the Project with a potential partner.
3. RATIONALE FOR THE PROJECT
RGT-3 is aligned with PGB's growth strategy as a gas and utilities infrastructure company, supporting the continued development and reliability of gas infrastructure in Peninsular Malaysia. The Project will enhance the capacity and flexibility of the gas supply network to meet nation's evolving demand requirements.
4. RISK FACTORS
The risks associated with this Project are typical for large scale infrastructure projects which include, but not limited to:
(i) Schedule Delays: Risks arising from unforeseen circumstances in construction or procurement as well as delay of approval from relevant authorities;
(ii) Budget Variance: Potential increases in project costs due to market volatility
(iii) Full utilisation of equity funding: Inability to secure project financing as per target timeline
The Company will continue to apply prudent project management practices and stakeholder engagements to manage these risks.
5. EFFECTS OF THE PROJECT
The Project does not have any effect on the issued and paid-up capital and substantial shareholders' shareholdings of PGB. The Project is currently planned to be funded through combination of debt and equity. While investment in the Project may result in an increase in the Group's gearing, it is not expected to have any material impact on the Group's net assets per share for the financial year ending 31 December 2026.
6. APPROVALS REQUIRED
The Project is not subject to the approval of the shareholders of PGB.
7. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED
None of the Directors, major shareholders, or persons connected to them have any interest, direct or indirect, in the Project.
This announcement is dated 4 May 2026.