Quick Note - Tenaga Nasional (TNB MK) (Buy) - TNB formalizes RGT-3 participation

Research evidence excerpt

Quick Note - Tenaga Nasional (TNB MK) (Buy) - TNB formalizes RGT-3 participation

Global Markets Research

Tenaga Nasional TENA.KL TNB MK 5 June 2026

EQUITY: POWER & UTILITIES

RatingTNB formalizes RGT-3 participation Remains Buy

Target price MYR 16.80 RemainsQuick Note

Closing price MYR 14.08 3 June 2026Key highlights from today's (4 June) announcement

Tenaga (TNB) announced on 4 June that its indirect wholly-owned subsidiary, Integrax

(unlisted), has entered into a heads of agreement (HOA) with Petronas Gas (PTG MK, Not

rated) to jointly develop Malaysia's third regasification terminal (RGT-3) in Lumut, Perak. A Research Analysts

special purpose vehicle (SPV) will be incorporated upon finalization of the shareholders' ASEAN Power & Utilities

agreement (SHA), with both parties co-developing RGT-3 through this SPV (link). Ahmad Maghfur Usman - NSM

ahmad.maghfurusman@nomura.comRGT-3 will utilise a floating storage regasification unit (FSRU) concept, with LNG storage

+603 2027 6892

and regasification on the FSRU. Regasified LNG will be transported via connecting

pipeline to the Peninsular Gas Utilisation system. The facility will have LNG storage Research Associates

capacity of 170,000m³ and regasification send-out capacity of 500 MMscfd, in line with our ASEAN Power & Utilities

initial estimate and existing RGT capacities (pleaserefertoourinitialviewsonPTG’s Shashwat Choudhary - NSFSPL

announcementon6April: link). Significantly, the RGT-3 capacity is being fully

underwritten by TNB Fuel Services Sdn Bhd (TNB's wholly-owned fuel procurement

subsidiary, unlisted) in stages.

The project is planned to be funded through a combination of debt and equity. TNB states

the investment is not expected to materially impact FY26E net assets per share, though

gearing may increase.