JOHOR BAHRU, 2 March 2022 - Gas Malaysia Berhad’s (“Gas Malaysia”) wholly-owned subsidiary, Gas Malaysia Virtual Pipeline Sdn Bhd (“GMVP”) signed a Gas Purchase Agreement with Kulim Greenergy Sdn Bhd (“Kulim Greenergy”), a wholly-owned subsidiary of Kulim (Malaysia) Berhad. Resulting from this partnership, GMVP will procure compressed biomethane from Kulim Greenergy to be injected into Gas Malaysia Berhad’s Natural Gas Distribution System (“NGDS”) network. For this business undertaking, the Compressed Bio-Methane (Bio-CNG) will be supplied from Kulim (Malaysia) Berhad’s palm oil mills namely Tereh and Sindora located in Kluang, Johor.
The agreement was formalised during a signing ceremony where Gas Malaysia was represented by Encik Shahrir Shariff, Director of Commercial, while Kulim Greenergy was represented by En Wan Adlin Wan Mahmood, Deputy General Manager, Sustainability & Innovation of Kulim (Malaysia) Berhad. Also gracing the signing ceremony as a witness, was the Group Chief Executive Officer of Gas Malaysia Berhad, Encik Ahmad Hashimi Abdul Manap and Encik Mohd Faris Adli Shukery, Managing Director of Kulim (Malaysia) Berhad.
Commenting on the inked deal, the Group Chief Executive Officer of Gas Malaysia Berhad, who is also the Chairman of GMVP, Encik Ahmad Hashimi Abdul Manap said, “We are honoured to partner with Kulim Greenergy on this green venture. Malaysia has an encouraging potential with regards to renewable and sustainable energy adoption, this is further complemented by a progressively evolving green energy landscape. We firmly believe that the future lies in renewable and sustainable energy.”
Meanwhile, Kulim (Malaysia) Berhad’s Managing Director, Encik Mohd Faris Adli Shukery said, “In line with Kulim’s aspiration to incorporate sustainable practices in its business activities, this venture is one of Kulim’s efforts to realise our commitment in the circular economy as part of Kulim’s “Trash to Treasure” initiatives. We expect this effort to contribute positively to the Group’s earnings by turning our compliance cost into a new income stream”.
From Gas Malaysia’s perspective, this partnership is part of its diversification strategy to explore other avenues within the gas value chain to further consolidate its position in the industry. As a responsible business entity, Gas Malaysia will continue to lay emphasis on the importance of ensuring its development in a sustainable manner as they progress ahead.
Renewable energy’s prominence is poised to accelerate in the future due to heightened concerns regarding climate change coupled with an increasing demand for Environmental, Social and Governance (ESG) considerations in business establishments. The Ministry of Energy and Natural Resources has widely reported in the media that the nation aspires to achieve 31% renewable energy capacity by 2025 and 40% by 2035 via its Malaysia Renewable Energy Roadmap (MyRER). This green gas venture is a positive step towards supporting the nation’s aspiration and Gas Malaysia and Kulim Greenergy will both be able to leverage on each other’s expertise for the long-term growth strategy.