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French-based engineering player Technip Energies has been tasked with front-end engineering design (FEED) work for a liquefied natural gas (LNG) project off the coast of Malaysia, enabling it to bring to life Southeast Asia’s next LNG regasification terminal.
Technip Energies has secured a FEED contract for the offshore regasification terminal (RGT) Yan project in Kedah, northwest Malaysia. This project is being jointly developed by Gas Malaysia , Tokyo Gas Asia , and VTTI . The estimated project costs are expected to be RM2 billion–RM3 billion ($490 million-$735 million).
“This RGT Yan project will introduce a new LNG entry point in the northern region of Peninsular Malaysia, strengthening the resilience and flexibility of the country’s natural gas supply, supporting growing industrial and power demand, and contributing to energy security across the region,” highlighted the French player. The European firm’s scope of work includes evaluating best regasification terminal configurations before completing the full FEED for the selected solution, establishing the project’s technical basis and supporting its progression toward a final investment decision (FID).
Since Gas Malaysia, as the lead project developer, received a letter to proceed (LTP) from Malaysia’s Energy Commission in March 2026 for RGT Yan, the project was cleared to advance into further implementation work, including engineering, financing, and site-preparation activities.
The Malaysian firm signed a joint development agreement (JDA) with Tokyo Gas and VTTI in May 2026. While Gas Malaysia is the project lead and sponsor during the development phase, the partners will undertake technical studies, commercial negotiations, regulatory work, and project management ahead of FID.
With a capacity of 6 million tons per annum (mtpa), the terminal will comprise an offshore floating LNG storage and regasification (FSRU), marine infrastructure, a subsea gas pipeline, and an onshore receiving facility.
The latest FEED award comes less than three months after Technip Energies received full notice to proceed (FNTP) with an engineering, procurement, and construction (EPC) contract for the Commonwealth LNG export facility in Louisiana.