Höegh Evi has entered into an agreement with Petroleum Sarawak Berhad (PETROS), Sarawak's state-owned oil and gas company, to jointly develop the proposed Kuching Liquefied Natural Gas (LNG) Terminal. The announcement was made on 30 September 2026.

Joint Development of Kuching LNG Terminal

The terminal will form part of the Kuching Low-Carbon (KLCH) development in Sarawak, Malaysia. Under the agreement, the two companies will jointly develop, own and operate the facility, which will comprise a floating storage and regasification unit (FSRU), mooring infrastructure, subsea and onshore pipelines, and onshore receiving facilities.

Catalyst for the Kuching Low-Carbon Development

According to the companies, the project is expected to contribute to Sarawak's energy security, support growing energy demand and enable the development of new industries in Kuching. The LNG Terminal is described as a key catalyst for KLCH's development, supplying natural gas for power generation in the city.

PETROS serves as the Master Developer of KLCH, driving the development of an energy and infrastructure ecosystem intended to support Sarawak's next phase of growth. Höegh Evi brings experience as an owner, developer and operator of FSRUs and maritime energy infrastructure to the partnership.

Erik Nyheim, CEO of Höegh Evi, said, "Höegh Evi is proud to work with PETROS as development partner in the Kuching LNG Terminal, a testament to our proven track record delivering floating LNG infrastructure projects. We are committed to supporting Sarawak's evolving infrastructure needs and enabling long-term growth in the region."

First Gas Targeted for End of 2029

The project is being developed with the aim of delivering its first gas by the end of 2029. PETROS and Höegh Evi said they will continue to assess opportunities to accelerate delivery in line with growing demand.

Once operational, the LNG Terminal is intended to support Sarawak's evolving energy needs and provide a range of services, including small-scale LNG distribution, truck loading, bunkering, storage, and reloading activities.

Focus on Local Capability Building

Beyond the terminal itself, the two companies will also explore opportunities for knowledge sharing, training, and skills development aimed at strengthening local capabilities to support Sarawak's long-term energy development.

The agreement pairs PETROS' role in Sarawak's state-led energy strategy with Höegh Evi's track record in floating LNG infrastructure, positioning the Kuching LNG Terminal as a central element of the KLCH development's planned energy ecosystem.

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