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.