KUALA LUMPUR: Petronas Gas Bhd

has entered into a binding heads of agreement with Integrax Bhd, unit of TNB Power Generation Sdn Bhd, to formalise their collaboration on the development of the Third Regasification Terminal (RGT-3) in Lumut, Perak.

TNB Power Generation is a wholly-owned subsidiary of Tenaga Nasional Bhd

(TNB).

In separate stock exchange filings, PetGas and TNB said a special purpose vehicle will be incorporated upon the signing the shareholders' agreement.

The RGT-3 will be developed based on the Floating Storage Regasification Unit (FSRU) concept, whereby the LNG storage and regasification processes will be on the FSRU. The regasified LNG will then be transported via a connecting pipeline from RGT-3 onshore & berthing facilities to the Peninsular Gas Utilisation system.

The RGT-3 is designed with an LNG storage capacity of 170,000 m3 and regasification send-out capacity of 500 MMscfd. The RGT-3 capacity is being underwritten by TNB Fuel Services Sdn Bhd (TNBF) in stages, with full capacity underwritten from 2030 onwards.

PetGas, Integrax and TNBF are deemed related companies by virtue of indirect shareholding under MoF Inc.