Gas Malaysia (KLSE:GASMSIA) will commit 49.8 million ringgit toward the proposed liquefied natural gas (LNG) re-gasification terminal in Kedah, Malaysia, according to a Friday Malaysian bourse filing.
Shares slid 1% in Monday's late afternoon trade.
The project will be under a joint development agreement signed with Tokyo Gas (TYO:9531) and VTTI, with a total development cost of 72 million ringgit. Gas Malaysia will spearhead the joint venture as project lead, holding a dominant 70% participating interest, while Tokyo Gas and VTTI will each maintain a 15% equity stake.
The agreement follows an earlier approval from Malaysia's Energy Commission.
The partners will jointly carry out technical, commercial, and regulatory development work ahead of a final investment decision on the project.
The terminal is expected to strengthen Malaysia's LNG import capacity, improve energy security and support industrial growth in the northern region, the filing said.
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