Höegh Evi Partners with PETROS on Floating LNG Terminal Serving Kuching in Malaysia

Norway-based Höegh Evi and Petroleum Sarawak Berhad (PETROS) have agreed to jointly develop, own, and operate the proposed Kuching LNG Terminal in Sarawak, Malaysia.

Floating Infrastructure Anchors New Sarawak Facility

The deal was announced on 30 September 2026 and covers a floating storage and regasification unit (FSRU), mooring infrastructure, subsea and onshore pipelines, and onshore receiving facilities.

The facility will be located within the Kuching Low-Carbon (KLCH) development, where it is intended to supply natural gas for power generation in the city.

Höegh Evi contributes experience as an owner, developer, and operator of FSRUs and maritime energy infrastructure, while PETROS, the state-owned oil and gas company of Sarawak, acts as Master Developer of KLCH.

Terminal Positioned as Driver of KLCH Growth

PETROS is leading the build-out of an energy and infrastructure ecosystem that the state says will support Sarawak's next phase of growth. Within that framework, the LNG Terminal is described as a key catalyst for KLCH's development.

According to the two companies, the project is expected to strengthen Sarawak's energy security, meet rising energy demand, and enable new industries to develop in Kuching.

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

End-2029 Target With Scope to Accelerate

The partners are working toward first gas by the end of 2029. PETROS and Höegh Evi said they will keep evaluating options to bring delivery forward in step with growing demand.

When operational, the terminal is intended to serve a range of services beyond regasification, including small-scale LNG distribution, truck loading, bunkering, storage, and reloading.

Skills Development Built Into the Deal

In addition to constructing and operating the terminal, the companies said they will look for ways to share knowledge and deliver training and skills development designed to build local capability for Sarawak's long-term energy development.

The agreement links the state's energy strategy, led by PETROS, with Höegh Evi's floating LNG track record, placing the terminal at the centre of the planned energy ecosystem for the KLCH development.