NewsCommodities & ForexTechnip Energies Awarded FEED Contract for Yan Offshore Regasification Terminal in Malaysia

Technip Energies Awarded FEED Contract for Yan Offshore Regasification Terminal in Malaysia

Author: Splash247·

Key Takeaways

  • •Technip Energies will evaluate regasification terminal configurations and establish the project's technical basis to support progression toward a final investment decision.
  • •The Yan regasification terminal is jointly developed by Gas Malaysia, Tokyo Gas Asia, and VTTI, and will utilize an offshore floating storage and regasification unit with a capacity of 6 million tonnes per annum.
  • •The project will introduce a new LNG entry point in northern Peninsular Malaysia, where existing regasification infrastructure is currently concentrated in the southern and central regions.
  • •The developers expect the terminal to strengthen natural gas supply network resilience and support growing industrial and power generation demand across the peninsula.
  • •FSRU technology enables faster deployment compared to traditional onshore terminals and has been increasingly adopted across Southeast Asia as countries expand LNG import capacity.
Technip Energies Awarded FEED Contract for Yan Offshore Regasification Terminal in Malaysia

Technip Energies, the French engineering and technology company specializing in liquefied natural gas (LNG), has been awarded a front-end engineering design (FEED) contract for the Yan offshore regasification terminal project in Kedah, Malaysia.

Under the contract, Technip Energies will evaluate optimal regasification terminal configurations before completing the full FEED for the selected solution. The company's responsibilities include establishing the project's technical basis and supporting its progression toward a final investment decision (FID). The FEED award marks a key early-stage milestone for the project, as it moves from concept evaluation toward engineering definition ahead of any developer commitment to proceed.

The Yan regasification terminal (RGT) is being jointly developed by Gas Malaysia, a natural gas distribution company serving Peninsular Malaysia; Tokyo Gas Asia, a subsidiary of Japan's largest city gas utility Tokyo Gas; and VTTI, a global energy storage provider. Once operational, the facility will have a regasification capacity of 6 million tonnes per annum and will comprise an offshore floating storage and regasification unit (FSRU), associated marine infrastructure, a subsea gas pipeline, and an onshore receiving facility.

The RGT Yan project is expected to introduce a new LNG entry point in the northern region of Peninsular Malaysia. The country's existing regasification infrastructure is concentrated in the southern and central parts of the peninsula, including the Sungai Udang terminal in Melaka and the Pengerang LNG terminal in Johor. According to the developers, the terminal will strengthen the resilience and flexibility of the country's natural gas supply network, support growing industrial and power generation demand, and contribute to broader regional energy security.

The project represents a significant infrastructure investment aimed at diversifying Malaysia's natural gas import infrastructure and reinforcing supply reliability across the peninsula. The use of FSRU technology, which allows for faster deployment compared to traditional onshore terminals, has been increasingly adopted across Southeast Asia as countries in the region expand LNG import capacity to meet rising energy demand.