Malaysia Energy LNG Hub
Malaysia is emerging as a dual LNG export and import hub, with new regasification capacity poised to create fresh opportunities for U.S. firms that supply LNG, floating infrastructure, power and industrial gas technologies, project development, advisory, and financing services.
A key driver of these opportunities is Malaysia’s major energy-purchasing commitment under the U.S.-Malaysia Agreement on Reciprocal Trade (ART), signed in October 2025. Under the agreement, national oil and gas company PETRONAS committed to purchasing $3.4 billion in U.S. LNG annually. This commitment will deepen bilateral energy trade as PETRONAS expands its global LNG portfolio through strategically located production hubs, long-term offtake agreements, and partnerships with U.S. LNG producers.
Malaysia is the world’s fifth-largest LNG exporter, accounting for 6.6% of global exports. Anchored by PETRONAS’ integrated upstream assets and liquefaction portfolio, Malaysia exported 28.8 million tonnes of LNG in 2025. The country also imported 3.48 million tonnes of LNG to meet domestic demand, which continues to grow on the back of power generation, industrial expansion, and emerging energy-intensive sectors. To address its growing demand, declining domestic gas production, and energy security priorities, Malaysia is expanding its LNG regasification network through two new terminals.
PETRONAS and the national power utility company, Tenaga Nasional Berhad, are jointly developing Malaysia’s third regasification terminal (RGT-3) in Lumut, Perak. The project will be Malaysia’s first LNG import terminal equipped with a floating storage regasification unit (FSRU). It will provide 170,000 cubic meters of storage capacity and a regasification send-out capacity of 500 million standard cubic feet per day. The terminal is targeted for commercial operations in the second quarter of 2029.
A fourth regasification terminal (RGT-4) is under development in northern Peninsular Malaysia by Gas Malaysia in partnership with Tokyo Gas and Netherlands-based VTTI. The terminal will serve the Kedah–Penang–Perak industrial corridor as part of the Pulau Bunting Integrated Development, which will also include a floating storage unit (FSU), a ship-to-ship gas transfer hub, and a 1,600-megawatt combined-cycle power plant.
These projects position Malaysia as a growing LNG import market and regional trading hub, offering opportunities for U.S. LNG suppliers, engineering, procurement, and construction (EPC) firms, technology providers, and services companies across the value chain. If you represent a U.S. company with the relevant capabilities and want to learn more, please contact Commercial Specialist Mohan Gurusamy at office.kualalumpur@trade.gov.