SHAH ALAM (Nov 7): Gas Malaysia Bhd is planning to commission another two biomethane projects by the first half of 2024 (1H2024) to be injected into the Natural Gas Distribution System (NGDS), as part of its venture into the biogas renewable and sustainable energy sector.

Gas Malaysia group chief executive officer Ahmad Hashimi Abdul Manap said about RM15 million to RM20 million would be allocated in capital expenditure (capex) for the construction of each biomethane plant.

“We are going to commission another two [biomethane projects] before the first half of next year and every year, we are going to double up the number of stations. They are basically biomethane stations where we can extract the biomethane, clean [them] up, and then reinject them] into our pipeline system, or we can even deliver the biomethane directly to the end customers who are residing in the area,” he told reporters at the Gas Malaysia business sustainability plan launch.

At the moment, Gas Malaysia currently has a gas purchase agreement with Sedenak Palm Oil Mill and Coronation Palm Oil Mill in Johor, to buy the processed biogas produced by the mills and inject it into the NGDS network. It was reported that the Sedenak biomethane plant commenced commercial operations in June 2023.

“We believe we are the pioneers in this (biomethane) and we would like to promote this further. There will be a continuous engagement with the government and regulatory bodies to ensure that we have enough support from the government and perhaps, there could be some incentive going forward,” Ahmad Hashimi added.

Ahmad Hashimi also indicated that Gas Malaysia is allocating between RM1.2 billion and RM1.4 billion in capex to build another 700-kilometres (km) to 800km of natural gas pipeline under its NGDS network over the next five years.

He noted that over the last 30 years of the company’s establishment, Gas Malaysia has built over 2,800km of natural gas pipeline under the NGDS network, which is centred around Peninsular Malaysia, serving more than 24,000 industrial, commercial and residential customers.

Earlier, Gas Malaysia unveiled its business sustainability plan, anchored on four pillars which include advancing environmental sustainability, strengthening business delivery, fostering people-centric organisations, as well as enhancing governance and transparency.

The sustainability plan is aligned with Gas Malaysia’s 10-year strategic business plan, known as GM32, reinforcing its commitment towards supporting the nation’s energy transition agenda.

“We recognise our role in helping the nation achieve [its] energy transition goals. As we navigate the dynamic energy landscape, Gas Malaysia plays an even more crucial role in promoting cleaner and more efficient energy solutions. Our aim is to be a significant part of the solution in supporting the government’s effort to address climate change," said Gas Malaysia chairman Tan Sri Wan Zulkiflee Wan Ariffin in his opening speech.

As part of the plan, Gas Malaysia is looking to install rooftop solar panels in all of its office premises across Peninsular Malaysia.

Additionally, the company is also planning to transition its entire fleet of about 120 to 130 petrol and diesel vehicles to electric vehicles (EV) by 2032.