Höegh Evi and PETROS Plan New LNG Import Terminal in Malaysia

Höegh Evi and Sarawak state-owned energy company Petroleum Sarawak Berhad, or PETROS, have signed an agreement to develop a floating LNG import terminal designed to strengthen gas supplies for power generation and industrial growth in the Malaysian state.

The proposed Kuching LNG Terminal will form part of the wider Kuching Low-Carbon Hub development and is expected to deliver its first gas by the end of 2029, the companies said Wednesday.

The project will include a floating storage and regasification unit, or FSRU, along with mooring facilities, subsea and onshore pipelines and gas receiving infrastructure. PETROS and Höegh Evi plan to jointly develop, own and operate the facilities.

The terminal is primarily intended to supply natural gas for power generation around Kuching as Sarawak seeks to accommodate rising electricity demand and attract additional industrial investment.

The companies are also evaluating whether the project schedule can be accelerated as demand develops.

Beyond pipeline gas supplies, the terminal is being designed to provide small-scale LNG distribution, truck loading, LNG bunkering, storage and reloading services. That could give the facility a broader role in supplying customers that are not directly connected to Sarawak’s pipeline network.

The agreement expands PETROS’ role in the state’s increasingly integrated gas sector. PETROS was appointed Sarawak’s sole gas aggregator effective February 2024, giving it responsibility for procuring and supplying natural gas to downstream customers in the state.

The company is also leading the Sarawak Gas Roadmap, which aims to increase the use of the state’s gas resources for domestic power generation, industrial development and other downstream activities rather than relying exclusively on export markets.

For Höegh Evi, the Kuching project adds another potential deployment for its FSRU business. Floating regasification terminals can provide an alternative to constructing a conventional land-based LNG receiving facility while also supporting services such as LNG storage and redistribution.

Höegh Evi, formerly known as Höegh LNG, was taken private after its Oslo-listed shares were acquired in 2021. The company is now privately owned through interests controlled by the Höegh family and funds managed by Igneo Infrastructure Partners.

The Kuching development also underscores Sarawak’s broader effort to expand domestic gas infrastructure while positioning the state as a regional energy and industrial hub.

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