Petronas cancels Lahat Datu project
KUALA LUMPUR, February 10, 2016 – Petronas is terminating its Regasification Terminal Lahat Datu (RTLD) project due to uncertainty and delays, Malaysia’s state-owned energy company said in a filing between partners today.
“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 shareholders agreement effective Feb 10, 2016,” the report said.
Petronas was working with government-run Sabah Energy to complete the project, which had been scheduled to be completed in 2015. The smaller state-focused company was offered up to 20% interest in the project in September 2012. The venture was expected to have a production capacity of 760,000-1 million tonnes of LNG per year.
The site faced a number of security obstacles due to the Lahad Datu insurgency in February 2013. In late June 2015, a stop work order was declared in the face of continued security issues.