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August 2026 | Malaysia LNG & Energy Infrastructure
Technip Energies has been awarded a Front-End Engineering Design (FEED) contract for the proposed RGT Yan offshore LNG regasification terminal in Kedah, northern Peninsular Malaysia, moving the project into a more advanced engineering and development stage.
The project is being jointly developed by Gas Malaysia Berhad, Tokyo Gas Asia Pte. Ltd. and VTTI B.V. and is planned as a new LNG import gateway for northern Peninsular Malaysia. The proposed development has an estimated investment of RM2 billion to RM3 billion and is designed for regasification capacity of up to 6 million tonnes per annum (MTPA).
The FEED award gives Technip Energies an important role in defining the technical basis of the RGT Yan development.
According to Technip Energies, its scope includes evaluating alternative regasification terminal configurations before completing the FEED for the selected solution. The work will establish the project's technical foundation and support its progression toward a Final Investment Decision (FID).
Technip Energies will carry out the work with support from its Kuala Lumpur operating centre, strengthening its involvement in Malaysia's LNG and gas infrastructure market.
The award is particularly significant because RGT Yan is not simply an LNG receiving facility. The development combines an offshore floating regasification unit with subsea and onshore infrastructure, creating a multi-package project that will require coordination across marine, subsea, gas processing and receiving facilities.
RGT Yan is planned to be located offshore Pulau Bunting in the Yan district of Kedah.
The core facility will be an Floating Storage and Regasification Unit (FSRU) capable of receiving, storing and regasifying LNG. The regasified natural gas will then be delivered through associated gas infrastructure to the Malaysian gas network.
The planned project configuration includes:
· An offshore FSRU
· Marine and mooring infrastructure
· A subsea gas pipeline
· An onshore receiving facility
· Associated gas receiving and transmission infrastructure
With a planned capacity of up to 6 MTPA, RGT Yan would establish a new LNG entry point in the northern region of Peninsular Malaysia.
RGT Yan has already passed several important regulatory and commercial milestones.
In March 2026, Gas Malaysia received a Letter to Proceed (LTP) from the Energy Commission of Malaysia. The authorization allowed the project to move into further implementation activities, including engineering, financing progression, site preparation and other preparatory work.
Two months later, Gas Malaysia signed a Joint Development Agreement (JDA) with Tokyo Gas and VTTI. Under the agreement, Gas Malaysia serves as project lead, while the partners contribute complementary capabilities across the LNG value chain and support technical, commercial, regulatory and development activities.
The FEED award to Technip Energies represents the next significant engineering milestone as the project moves toward a final investment decision.
Malaysia already has LNG import and regasification infrastructure, but the RGT Yan project would introduce an additional LNG entry point in the northern region of Peninsular Malaysia.
The project is intended to improve the flexibility and resilience of the country's natural gas supply while supporting increasing demand from industrial and power-generation customers in the region.
For Gas Malaysia, the project also represents an expansion beyond its traditional gas distribution and sales activities into LNG receiving and regasification infrastructure.
Once operational, RGT Yan is expected to provide greater flexibility in sourcing LNG and strengthen the connection between international LNG supplies and domestic gas demand.
The transition into FEED is particularly important for the project's future equipment and material requirements.
During FEED, the technical configuration of the terminal is established, including equipment specifications, process conditions, material requirements, layout and interfaces between offshore and onshore systems.
As the project advances toward FID and eventually EPC execution, procurement opportunities could emerge across a wide range of packages, including:
· FSRU and regasification equipment
· LNG and gas piping systems
· Pressure vessels and process equipment
· Heat exchangers
· Gas treatment and metering equipment
· Valves, fittings and flanges
· Subsea pipeline systems
· Onshore receiving facilities
· Marine and terminal infrastructure
For LNG and gas-processing facilities, material selection is particularly important in equipment exposed to cryogenic temperatures, pressure, LNG or corrosive process streams.
Depending on the final process design and operating conditions, equipment manufacturers may require stainless steels, nickel alloys, titanium or other corrosion-resistant materials.
For certain pressure-containing and heat-transfer equipment, clad plate can provide a combination of structural strength and corrosion-resistant surface properties.
A clad plate consists of a structural base metal bonded to a corrosion-resistant alloy layer. This allows equipment manufacturers to use corrosion-resistant materials on the process-contact surface without manufacturing the entire component from a solid high-alloy material.
Potential applications include pressure vessels, heat exchangers, reactors and other process equipment, depending on the final design and material requirements.
For LNG and gas infrastructure projects, clad material combinations may include carbon steel with stainless steel, nickel alloys, titanium or other corrosion-resistant metals. The final material grades, thickness combinations and dimensions are determined by the equipment design, process conditions and project specifications.
With FEED now underway, RGT Yan is entering a stage where technical decisions made today will influence future procurement and fabrication requirements.
The project's combination of an offshore FSRU, subsea gas pipeline and onshore receiving facilities means that future contracting activity could extend across both offshore and onshore equipment supply chains.
The next major milestones will be the completion of FEED, further commercial and regulatory development, and the project's Final Investment Decision. Once FID is reached, the project can move toward detailed engineering, procurement, fabrication and construction.
For engineering companies, equipment manufacturers and specialist material suppliers serving the LNG, oil & gas and petrochemical sectors, RGT Yan is therefore a project worth following as Malaysia expands its LNG import infrastructure.
FUGO TECH manufactures metal clad plates and machined components for pressure vessels, heat exchangers and other process equipment used across the oil & gas, petrochemical and energy industries. Its material solutions cover stainless steel, nickel alloys, titanium, copper alloys and other corrosion-resistant metals, with products including clad tube sheets and clad dish heads manufactured to project-specific requirements.
www.fugo-tech.com | sales@fugo-tech.com
Fugo Tech is focused on the manufacturing of clad metal plate and distributes the Stainless Steel, Titanium, Nickel Alloy, Zirconium and other non-ferrous metal pipes, fittings, and flanges.
