Sarawak's first LNG regasification terminal is being built in Kuching

KUCHING, 1 Oct: Kuching Liquefied Natural Gas (LNG) Terminal which will be Sarawak's first LNG regasification facility is targeted to start gas pipeline by the end of 2029.

Sarawak Berhad Petroleum Group (PETROS) Chief Executive Officer Dato Janin Girie said the development of the terminal is a strategic investment to drive the next phase of Sarawak's economic development.

"By providing critical infrastructure to bring natural gas to Kuching, this LNG terminal will help develop an ecosystem capable of attracting high-value investments, boost new industries and open up the potential of Kuching as a centre for new industrial growth", he said in a statement from PETROS, today.

He said the terminal will provide critical infrastructure to ensure that natural gas supply can be channelled to Kuching, thus supporting the development of the Kuching Low Carbon Hab.

PETROS has signed a Joint Development Agreement (JDA) with Höegh Evi for the development of Kuching LNG Terminal as part of the Kuching Low Carbon Hab development.

According to PETROS, the terminal will channel natural gas directly to Kuching and surrounding areas to meet increased energy demand as well as strengthen Sarawak's energy security.

Under the agreement, PETROS and Höegh Evi will jointly develop, own and operate the respective terminals which include floating storage and regasification units (FSRU), dredging facilities, seafloor and land pipelines as well as onshore reception facilities.

PETROS said that in addition to supporting energy generation, the terminal is planned to provide services including small-scale distribution of LNG, loading to trucks, refuelling of ships, storage and reloading.

The facility will also allow the gas supply to be extended to other parts of Sarawak to meet the state's growing energy needs.

"The project targets the first gas supply by the end of 2029, with PETROS and Höegh Evi continuing to assess opportunities to accelerate its implementation in line with increasing energy demand and project readiness", according to the statement.