GMVP, Kulim Greenergy collaborate on green gas venture - MIDA | Malaysian Investment Development Authority
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GMVP, Kulim Greenergy collaborate on green gas venture

GMVP, Kulim Greenergy collaborate on green gas venture

03 Mar 2022

Gas Malaysia Virtual Pipeline Sdn Bhd (GMVP) signed a gas purchase agreement with Kulim Greenergy Sdn Bhd for a green gas venture, allowing both parties to leverage on each other’s expertise for the long-term growth strategy.

From this partnership, GMVP will procure compressed biomethane from Kulim Greenergy to be injected into Gas Malaysia Bhd’s natural gas distribution system network.

For this business undertaking, the compressed biomethane will be supplied from Kulim (M) Bhd’s palm oil mills namely Tereh and Sindora located in Kluang, Johor.

“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,” said Gas Malaysia group CEO and GVMP chairman Ahmad Hashimi Abdul Manap said in a statement yesterday.

Meanwhile, Kulim MD 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,” Mohd Faris added.

The agreement was formalised during a signing ceremony where Gas Malaysia was represented by commercial director Shahrir Shariff while Kulim Greenergy was represented by Kulim’s deputy GM (sustainability and innovation) Wan Adlin Wan Mahmood. Ahmad Hashimi and Mohd Faris witnessed the ceremony.

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,” the firm said, adding that this green gas venture is a positive step towards supporting the nation’s aspiration.

Source: The Malaysian Reserve