kuala lumpur: The Gas Redisintegration Terminal Project, located at Kemaman, Terengganu, of E&H Energy Sdn Bhd, will improve accessibility and ensure a stable supply of liquefied natural gas (LNG) for emerging sectors such as industries, power plants and data centers. It has been developed to deal with the increasing energy demand in Malaysia.
The independent multi-user and multi-service LNG import and legacy terminals is also poised to play a pivotal role in Malaysia’s evolutionary gas market.
By working with the government’s third-party access (TPA) framework, RGT Kemaman ensures a national safe and reliable energy supply while promoting a more competitive and dynamic gas market.
“It is operated and managed independently as part of the purpose of the TPA, allowing multiple TPA licensees to subscribe to the products and services offered at the terminal.
“By promoting access to gas supply, this project will not only encourage competition, but also stimulate economic growth and industrial development across Malaysia.
As the project owner and integrator, E&H Energy is working with the Terengganu State Government to negotiate with other strategic stakeholders to jointly develop RGT Kemaman.
The company has secured a long-term LNG supply of 6 million tons per year for imports to Malaysia since 2028. The development of LNG import terminals is important to promote the import, storage and readjustment of contracted LNG from the West Coast of Mexico. Other potential sources with the ability to re-export LNG.
Regasified LNG is delivered to users in gaseous form via a truck-based LNG virtual pipeline system and via a Petronas Peninsula Gas Utilization (PGU) pipeline.
E&H Energy develops and operates LNG import terminals designed for efficient operation and rapid construction within 30 months. Located less than 10 km from the Petronas PGU, the safe site offers water depths of over 14 meters and is suitable for large-scale LNG operations.
Engineering work on the permit approval process, including approval from the Energy Commission (ST) and the Telenganu government, is underway.
Final investment decisions are expected by the end of 2025, depending on approvals from TPA licensees and gas users and adequate market profits.
RGT Kemaman is expected to start operation by 2028. The anchor end customers of the terminal will be the country’s electricity sector.
Additionally, E&H Energy will supply Malaysia with up to 1.6 million tonnes of LNG per year between 2025 and 2030, ready to supply it through spot freight or short-term supply contracts at competitive tariffs.
Key project milestones include ensuring a strong market response where multiple shippers have expressed interest in underwriting capabilities, due to the flexibility of terminals to provide a variety of services.
The project adheres to all policies and regulations set within the TPA framework and continues discussions with financial institutions, bankers and private equity companies that have expressed strong interest in this private LNG terminal initiative. We guarantee that you have the necessary funding support.
E&H Energy CEO Datin Hanim Bukhari details the key benefits of RGT Kemaman. The project said it should be seen as expanding the country’s LNG import and readjustment capabilities.
“This initiative is a contribution from the private sector to achieve the ‘Sustainable Clean Energy 2050’ mission.
“From 2028 onwards we will provide energy from RGT Kemaman in the form of RNG or gases.
“We are confident in our business model as an independent, multi-user, multi-service terminal. This proposed project is for the more active involvement of TPA licensees in expanding gas market activities. It serves as an enabler and platform,” she said.
