Lahad Datu regasification terminal project scrapped

Lahad Datu regasification terminal project scrapped

PETALING JAYA, FEB 11 : Petronas Gas Bhd and Sabah Energy Corp Sdn Bhd have scrapped plans to build a regasification terminal in Lahad Datu due to prolonged uncertainty over the project, which was delayed by intrusions by rebels in Lahad Datu in 2013.

Petronas Gas told Bursa Malaysia yesterday that it and Sabah Energy mutually agreed to terminate their shareholders agreement on Regasification Terminal Lahad Datu Sdn Bhd (RGT), effective yesterday. The parties inked the shareholders agreement back in 2012.

The RGT was to develop facilities to receive, store and vaporise imported LNG with a maximum capacity of 0.76 million tonnes a year (up to 100 million standard cubic feet a day) and supply natural gas to the power plant.

Among the objectives of the project was to ensure the availability of natural gas supply in the east coast of Sabah, including Sandakan, Lahad Datu and Tawau, and to spur the economy there.

RGT, a wholly-owned subsidiary of Petronas Gas, was incorporated to undertake the construction and development of the liquefied natural gas regasification facilities in Lahad Datu.

On Bursa Malaysia yesterday, Petronas Gas shares closed 0.8% or 18 sen lower at RM22.32, with some 332,700 units traded.