Singapore/Kuala Lumpur, 24 October 2023 –
City Energy and Gentari have signed a Joint Feasibility Study
Agreement to construct a pipeline from Malaysia to Singapore for
the import of hydrogen into the Republic.
This follows
a Memorandum of Understanding signed in April 2023 between City
Energy, Singapore’s sole producer and provider of piped
town gas and wholly owned subsidiary of Keppel Infrastructure
Trust, and Gentari, a Malaysian clean energy solutions provider
wholly owned by PETRONAS.
The study will be conducted
over a period of 12 months. Upon the conclusion of the study, both
parties will collectively determine the way forward in relation to
the execution of a FEED (Front End Engineering Design)
agreement.
Hydrogen is key to Singapore’s
ambition to achieve net zero emissions by 2050. To that end, the
government has in October 2022 unveiled its National Hydrogen
Strategy as a key decarbonisation pathway.
Like
Singapore, Malaysia positions hydrogen as a pivotal driver for
energy transition. The recently launched National Energy
Transition Roadmap as well as Hydrogen Economy and Technology
Roadmap will see Malaysia exploring bilateral agreements with key
importing countries to develop a low-carbon hydrogen value chain,
catalyse project development, and secure long-term green hydrogen
offtakes.
Perry Ong, Chief Executive Officer of City
Energy, said: “This joint feasibility study with Gentari
underscores our commitment to providing sustainable energy to
households and businesses for generations to come and to
supporting Singapore’s efforts to reduce emissions and
address climate change.”
Hydrogen is the largest
component in town gas produced at City Energy’s Senoko
Gasworks plant in northern Singapore, making City Energy one of
the largest last-mile distributors of hydrogen in Singapore. Any
pipeline to be established by the parties will supply hydrogen
into the Senoko Gasworks plant. The collaboration with Gentari
follows City Energy’s ongoing feasibility studies with
leading industry partners and institutes of higher learning to
explore alternative sources of hydrogen.
Michèle
Azalbert, Gentari’s Chief Hydrogen Officer, said:
“This collaboration with City Energy is a strategic step
for Gentari towards accelerating the adoption of clean hydrogen as
a viable energy source for customers in Asia Pacific and further
afield. In line with our aim to produce up to 1.2 million tonnes
per annum of clean hydrogen, Gentari is pleased to contribute
towards accelerating the development of clean hydrogen through
cross-border infrastructure, supporting Malaysia and
Singapore’s target to achieve net zero emissions by
2050.”
The collaboration between City Energy and
Gentari will continue a long-standing cooperation between Malaysia
and Singapore. Since 1991, Singapore has been importing natural
gas from Malaysia through the 2,623 kilometre-long Peninsular Gas
Utilisation pipeline, owned and operated by Gentari’s
sister company, PETRONAS Gas Berhad.