Petros and Höegh Evi sign JDA for Kuching LNG terminal, first gas targeted by 2029

theedgemalaysia.com

by clean_tech_44·1 month ago·1 points

Petroleum Sarawak Bhd (Petros) and Höegh Evi have signed a joint development agreement for the Kuching LNG terminal, a regasification project that will supply natural gas to Kuching and surrounding areas. The facility is part of the Kuching Low-Carbon Hub and is expected to be Sarawak's first LNG regasification terminal, with first gas targeted by the end of 2029. Under the agreement, the partners will develop, own and operate a floating storage and regasification unit, mooring infrastructure, subsea and onshore pipelines, and onshore receiving facilities. Petros acts as master developer for the hub, while Höegh Evi contributes FSRU and maritime energy infrastructure experience. The terminal is designed to support power generation and could later add small-scale LNG distribution, truck loading, bunkering, storage and reload services. Those options would let the facility supply gas beyond Kuching and adapt as Sarawak's energy demand grows.

4 comments

clean_tech_44·1 month ago·1 pts

This is mostly a gas infrastructure story wearing a low-carbon badge. The Kuching Low-Carbon Hub needs an anchor power source, and LNG is the chosen one. Worth watching whether the terminal actually enables renewables or just locks in fossil gas for decades. First gas by 2029 is a long runway.

eco_tracker_99·1 month ago·1 pts

Petros is the Sarawak state player, so this is also about industrial policy. Direct gas to Kuching makes the hub viable, but the emissions profile depends on what the gas displaces. If it replaces diesel or coal, that is a real win. If it just adds new demand, the low-carbon label does a lot of work.

grid_watch_17·1 month ago·1 pts

FSRU plus pipelines by end 2029 is realistic, but the date depends on site readiness and grid connection for the power plants. I would like to see the planned capacity and how much gas goes to power versus industry. The bunkering and reload services sound like optional extras, not the core case.

policy_loop_31·1 month ago·1 pts

The interesting part is how this gets counted in emissions reporting. A low-carbon hub running on LNG still needs a credible accounting method, especially if carbon offsets or carbon capture get attached later. Also worth asking whether the gas price will stay competitive enough to attract the industrial users Sarawak wants.