KUALA LUMPUR (Oct 25): Petronas Gas Bhd's 65%-owned subsidiary Pengerang LNG (Two) Sdn Bhd (PLNG2SB) has announced a non-binding expression of interest (EOI) for a proposed liquefied natural gas (LNG) storage tank in Pengerang, Johor to be used for LNG storage and reloading activities.

In a statement on Petronas Gas’ website, the company said the EOI, which was published on Oct 1, 2021 and scheduled to end by 4pm on Nov 30, 2021 (Malaysian time), aims to support growth of the LNG emerging market across Asia.

"In supporting growth of the LNG emerging market in Asia, PLNG2SB is considering to build an additional LNG tank (Tank 3) in Pengerang. The utilisation of Tank 3 is for LNG to be brought into and stored solely for the purpose of LNG transhipment.

"Tank 3 is targeted to be completed [with the] commercial operational date earliest by 4Q25 (the fourth quarter of 2025), subjected to the final [investment decision] date.

"Interested parties are welcomed to participate in this non-binding EOI and submit their proposals no later than Nov 30, 2021 by 4pm Kuala Lumpur time via email pgb.marketing@petronas.com,”  Petronas Gas said.

According to the attached EOI document, PLNG2SB owns, operates and maintains the onshore LNG Regasification Terminal in Pengerang (RGTP).

The RGTP currently features two LNG storage tanks with total capacity of 400,000 cubic metres (m³), Petronas Gas said.

"[The] preferred storage tank usable capacity [is] 160,000m³. [The] preferred contract term [is] 20 years."

According to Petronas Gas, the indicative fee for the proposed Tank 3 is US$24.12 million (about RM100.15 million) a year based on the storage tank's preferred usable capacity of 160,000m³ and the 20-year contract.

Petronas Gas said the bidders' EOI proposals should contain indicative offer prices in US dollars per year.

“The successful bidder for this non-binding EOI shall be invited in writing to the next stage of the EOI, which will be informed later by PLNG2SB,” Petronas Gas added.

According to Petronas Gas’ latest annual report, PLNG2SB’s other shareholders include Dialog LNG Sdn Bhd and Permodalan Darul Ta’zim Sdn Bhd which own 25% and 10% stakes in PLNG2SB respectively.

Petronas Gas’ website indicates that the company’s gas transmission and regasification division operates and maintains the group's offshore LNG Regasification Terminal in Sungai Udang, Melaka (RGTSU) and the onshore RGTP.

"RGTSU began its commercial operation in the second quarter of 2013, while RGTP began its commercial operation in the fourth quarter of 2017,” Petronas Gas said.

On Bursa Malaysia on Monday (Oct 25), Petronas Gas’ share price had fallen two sen or 0.12% to RM16.90 at 11.03am, giving it a market value of about RM33.46 billion.

The company has 1.98 billion issued shares, according to its latest quarterly financial report.