PETROS AND HÖEGH EVI PARTNER TO DEVELOP KUCHING LNG TERMINAL

1 October 2026, Kuching - Petroleum Sarawak Berhad (PETROS) has entered into a Joint Development Agreement (JDA) with Höegh Evi, a global leader in maritime energy infrastructure, with management in Norway and more than 50 years of experience owning and operating floating LNG terminals worldwide. The JDA will support the joint development of the Kuching Liquefied Natural Gas (LNG) Terminal as part of the Kuching Low-Carbon Hub (KLCH) development.

The proposed terminal will establish Sarawak’s first LNG regasification facility, delivering natural gas directly to Kuching and surrounding areas to support growing energy demand and strengthen the State’s energy security. By establishing a reliable gas supply to Kuching, the LNG Terminal will serve as a key catalyst for KLCH, supporting power generation and laying the foundation for wider industrial development.

Under the JDA, both parties will jointly develop, own and operate the Kuching LNG Terminal, which will comprise 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, driving the development of an integrated low-carbon industrial ecosystem, with Höegh Evi’s international experience in developing and operating FSRUs and maritime energy infrastructure.

“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,” said Dato Janin Girie, PETROS Group Chief Executive Officer.

The project is targeting first gas by the end of 2029, with PETROS and Höegh Evi continuing to assess opportunities to accelerate delivery in line with growing energy demand and project readiness.

Besides supporting power generation, the LNG Terminal is designed to accommodate a range of potential services, including small-scale LNG distribution, truck loading, bunkering, storage and reload activities. These components will enable the facility to supply gas to Kuching, while providing the flexibility to extend gas supply to other parts of Sarawak and meet the State’s evolving energy needs.

An artist’s impression of the Floating Storage & Regasification Unit (FSRU) to deliver gas supply to Kuching.

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

(Source: Höegh Evi)

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