Petroliam Nasional Bhd (Petronas), through its subsidiary Petronas LNG Sdn Bhd (PLSB), has signed a Heads of Agreement (HoA) with SMJ Energy Sdn Bhd to formalise a 25% equity participation by SMJ Energy in PFLNG 3 Sdn Bhd, the project company developing Malaysia’s next floating liquefied natural gas (LNG) facility.

The agreement allows Petronas to deepen its collaboration with the Sabah state government, while advancing the responsible and inclusive development of the state’s natural gas resources.

The HoA was signed by SMJ Energy CEO Datuk Dr Dionysia Aloysius Kibat and PLSB CEO Shamsairi M Ibrahim in the presence of Sabah Chief Minister Datuk Seri Hajiji Noor and Petronas President and Group CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz.

The PFLNG 3 project is a shore-based floating LNG facility to be developed at the Sipitang Oil & Gas Industrial Park in Sabah. Once completed, it will enhance Malaysia’s LNG infrastructure and expand the nation’s capacity to monetise gas resources efficiently and sustainably.

“This collaboration with SMJ Energy is a key step in ensuring Sabah’s greater participation in its own energy development,” Petronas said in a statement.

It added that the proposed equity acquisition will be finalised through definitive agreements following the HoA, setting the stage for deeper integration of state interests in national energy ventures.