Gas Malaysia, Petronas Gas team up to study Yan terminal pipeline link

KUALA LUMPUR, Sept 7 — Gas Malaysia Bhd has entered into a joint study and collaboration agreement (JSCA) with Petronas Gas Bhd (PGB) to study the development of an onshore lateral pipeline to connect the proposed regasification terminal (RGT) Yan project to the Peninsular Gas Utilisation (PGU) system.

In a filing with Bursa Malaysia, Gas Malaysia said the JSCA sets out the framework for the companies to conduct a feasibility study and related activities for the proposed pipeline interconnection.

“The JSCA formalises the parties’ respective roles, responsibilities and cost allocation arrangements for the study, and forms part of the requirements under the Energy Commission of Malaysia’s letter of proceed (LTP) for the RGT Yan project,” it said.

The feasibility study will assess the technical, operational and commercial viability of the proposed pipeline interconnection, including engineering design, land acquisition requirements and other technical assessments needed to support PGB’s confirmation of the proposed interconnection, it said.

Gas Malaysia said the study’s outcome would provide information needed to progress the RGT Yan project and facilitate the relevant submission to the Energy Commission in accordance with the LTP.

Under the agreement, PGB will lead the feasibility study, covering hydraulic steady-state and transient simulations, site surveys comprising desktop and field assessments, engineering surveys, soil investigations and front-end engineering design.

The studies will support PGB’s assessment of the technical feasibility of developing the lateral pipeline, Gas Malaysia said.

Meanwhile, Gas Malaysia will provide information on volumetric flow rates and gas demand at the relevant demand centres to support the pipeline feasibility assessment.

PGB is a related party of Gas Malaysia by virtue of its direct 14.8 per cent stake in the company. — Bernama