Kuching’s first LNG regasification terminal targets first gas by end 2029

Höegh Evi’s FSRU at the Sociedad Portuaria El Cayao (SPEC LNG) import terminal in Cartagena, Colombia, with a similar solution to be developed for the Kuching LNG Terminal at a suitable offshore location. Photo: Höegh Evi

By DayakDaily Team

KUCHING, Oct 1: Kuching is poised to become home to Sarawak’s first liquefied natural gas (LNG) regasification facility, with first gas targeted by the end of 2029 to provide a direct supply to the city and surrounding areas and support the Kuching Low-Carbon Hub (KLCH).

Petroleum Sarawak Berhad (PETROS) has entered into a Joint Development Agreement (JDA) with Höegh Evi, a global maritime energy infrastructure company, to jointly develop the terminal as part of the KLCH development.

PETROS Group Chief Executive Officer Dato Janin Girie said the terminal represented a strategic investment in Sarawak’s next phase of economic development.

“The Kuching LNG Terminal is a strategic investment to drive Sarawak’s next phase of economic development.

“By establishing the critical infrastructure needed to bring natural gas to Kuching, the LNG Terminal will help build an ecosystem that attracts high-value investment, enables new industries and unlock Kuching’s potential as a new industrial growth centre,” he said in a statement today.

Under the JDA, PETROS and Höegh Evi will jointly develop, own and operate the Kuching LNG Terminal, which will feature a floating storage and regasification unit (FSRU), mooring infrastructure, subsea and onshore pipelines, and onshore receiving facilities.

The partnership combines PETROS’ role as KLCH Master Developer with Höegh Evi’s international experience in developing and operating FSRUs and maritime energy infrastructure.

The terminal will serve as a key catalyst for the KLCH by supporting power generation and laying the foundation for wider industrial development.

Besides power generation, the terminal is designed to accommodate potential services including small-scale LNG distribution, truck loading, bunkering, storage and reload activities.

These facilities will allow the terminal to supply gas to Kuching while providing flexibility to extend gas supplies to other parts of Sarawak as the State’s energy needs evolve.

PETROS said the project remained targeted for delivery by the end of 2029, while both parties continued to assess opportunities to accelerate implementation in line with growing energy demand and project readiness. — DayakDaily