Höegh Evi and PETROS partner to develop LNG terminal in Malaysia
Höegh Evi has signed an agreement with Petroleum Sarawak Berhad (PETROS) to jointly develop a proposed LNG import terminal in Kuching, Sarawak, Malaysia, with the project targeting its first gas delivery by the end of 2029.
The Kuching LNG Terminal will form part of the Kuching Low-Carbon (KLCH) development, an energy and infrastructure initiative led by PETROS, Sarawak’s state-owned oil and gas company. The proposed facility is intended to supply natural gas for power generation in Kuching and support the region’s future energy requirements.
Under the agreement, Höegh Evi and PETROS will jointly develop, own and operate the terminal, combining floating LNG infrastructure with associated offshore and onshore facilities.
Proposed terminal to include floating regasification infrastructure
The Kuching LNG Terminal project will comprise a floating storage and regasification unit (FSRU), mooring infrastructure, subsea and onshore pipelines, and onshore gas receiving facilities.
The FSRU will form part of the planned infrastructure for receiving, storing and regasifying LNG before supplying natural gas to the local market. The development is intended to support power generation in Kuching while providing additional LNG-related services.
According to the companies, the proposed terminal will also accommodate small-scale LNG distribution, truck loading, LNG bunkering, storage and reloading activities. These services are included in the project’s development plans and have not yet entered operation.
PETROS is acting as the master developer of the wider Kuching Low-Carbon development, while Höegh Evi brings experience in the ownership, development and operation of FSRUs and other maritime energy infrastructure.
Erik Nyheim, Chief Executive Officer of Höegh Evi, said the partnership would support the development of LNG infrastructure in Sarawak.
“We are committed to supporting Sarawak’s evolving infrastructure needs and enabling long-term growth in the region,” Nyheim said.
First gas targeted by the end of 2029
The partners are developing the terminal with the aim of delivering its first gas by the end of 2029. They are also assessing whether the project schedule can be accelerated in response to growing energy demand.
The proposed facility is expected by the partners to contribute to Sarawak’s energy security and support the development of new industries in Kuching through access to natural gas supplies.
Alongside the infrastructure development, PETROS and Höegh Evi intend to explore opportunities for knowledge sharing, professional training and skills development to strengthen local capabilities in the energy sector.
The agreement establishes the companies’ cooperation on the proposed terminal, with the development programme currently targeting the end of 2029 for initial gas delivery.
