KUALA LUMPUR: Gas Malaysia Bhd
has partnered with Sime Darby Offshore Engineering Sdn Bhd to undertake a biogas compressed natural gas distribution business extracted from the palm oil mill effluent.
In a statement to Bursa Malaysia on Tuesday, Gas Malaysia said the joint venture would involve the provision of the sale, supply and transportation of BioCNG to customers and carrying out of the design, construction, installation, commissioning and operation of pressure regulating unit at each customer’s premises.
Gas Malaysia said the tie-up was formed as both parties seek to optimize the combined strengths of each partner.
"Gas Malaysia with vast experience in marketing and promotion of natural gasusage to industrial, commercial and residential sectors in Peninsular Malaysia through pipeline distribution has the potential network and infrastructure to facilitate the proposed business activities of the joint venture," it said.
It added that the joint venture would serve as a platform for Gas Malaysia to supply natural gas to newcustomers currently not serve by the company’s existing pipeline.
Gas Malaysia will fund its investment through its internally generated funds.
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