A key agreement for Petronas’ planned liquefied natural gas receiving and regasification terminal at Lahad Datu in Sabah has been terminated.
Petronas Gas told Bursa Malaysia via a filing that all parties had agreed to mutually terminate an agreement.
A statement said: “In view of the prolonged uncertainty of the RTLD project, the parties to the shareholders agreement for Regas have mutually agreed to terminate the said SHA effective
February 10, 2016.”
In September 2012, Petronas Gas offered Sabah Energy the opportunity to acquire a 20% stake in the project.
Sabah Energy had been supposed to subscribe to one ordinary share, with the agreement also allowing it to subscribe up to 20% of the equity within a stipulated timeframe.
The facility had also been scheduled to be completed in 2015 and was expected to have a production capacity of around 0.76million tonnes per annum.
The project has faced numerous challenges including a halt as a result of the Lahad Datu insurgency in February 2013.
Then, in late June last year, a stop work order was issued due to security concerns in the region.