Höegh Evi and PETROS Sign Joint Development Agreement for Floating LNG Terminal in Sarawak

## Höegh Evi and PETROS to Develop LNG Terminal in Sarawak Norwegian floating energy infrastructure company Höegh Evi and Petroleum Sarawak Berhad (PETROS), the state-owned oil and gas company of Malaysia's Sarawak state, have entered into a Joint Development Agreement (JDA) to develop a liquefied natural gas (LNG) terminal in Sarawak, according to a joint announcement released on 30 September 2026. The partnership brings together Höegh Evi's established expertise in floating storage and regasification units (FSRUs) and floating LNG infrastructure with PETROS's strategic mandate to develop Sarawak's energy sector and domestic gas market. Financial terms of the agreement were not disclosed. ### Strategic Significance for Southeast Asia's LNG Market The development comes at a time of growing energy demand across Southeast Asia, where floating LNG terminals have emerged as a cost-effective and faster-to-deploy alternative to conventional onshore regasification facilities. Sarawak, Malaysia's largest state by area and a significant hydrocarbon producer, has been actively expanding its role as a regional energy hub. For Höegh Evi, the Sarawak project represents a further extension of its global FSRU and floating energy portfolio. The Oslo-headquartered company has been a prominent player in the floating LNG infrastructure space, with assets deployed across multiple continents. PETROS, established as Sarawak's exclusive gas aggregator and distributor, has been pursuing upstream and midstream energy projects to support the state's long-term energy security and economic development objectives. ### Project Development Outlook While specific details regarding terminal capacity, project timeline, and the potential vessel deployment have not yet been made public, the JDA signals that both parties have committed to advancing the project through feasibility and front-end engineering phases. Sarawak's existing LNG export infrastructure — centred on the Bintulu LNG complex, one of the world's largest — provides a well-established industrial backdrop for further gas-related development in the region. The agreement underscores the broader industry trend of floating solutions gaining traction in emerging and developing markets, where speed of deployment and lower capital expenditure compared to onshore terminals offer compelling advantages for governments and energy companies alike. Further details on the project's scope and timeline are expected as the joint development process progresses.