Petronas Gas and Sabah Energy have canceled the Lahad Datu liquefied natural gas (LNG) project in Malaysia, which was originally scheduled to be complete in 2015.
Dato' Harun Hj Ismail, CEO of Sabah Energy, and Enck Samsudin Bin Miskon, Petronas CEO sighing 2012 deal. Image from Sabah.
“In view of the prolonged uncertainty of the Regasification Terminal Lahad Datu Project, the parties to the shareholders agreement for the regasification terminal, Petronas Gas and Sabah Energy, have mutually agreed to terminate the agreement effective 10 February 2016,” Petronas Gas said in a statement to the stock exchange.
The two companies entered into a shareholders agreement in September 2012 for the regasification terminal, which Sabah agreed to 20% stake in the project.
Lahad Datu was expected to supply gas at a capacity of 0.76 MTPA, to be imported and regasified in order to supply the proposed Lahad Datu gas-fired power plant.
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