PETALING JAYA: Gas Malaysia Bhd has partnered with Sime Darby Offshore Engineering Sdn Bhd (SDOE) to distribute biogas compressed natural gas (BioCNG) extracted from palm oil mill effluent (Pome).
Pome is the voluminous liquid waste that comes from the sterilisation and clarification processes in milling oil palm.
In its filing with Bursa Malaysia, Gas Malaysia said the rationale for the joint venture (JV) was to optimise the combined strengths of both parties in their respective fields.
“The JV will serve as a platform for Gas Malaysia to supply natural gas to new customers currently not served by the company’s existing pipeline,” it said in a statement yesterday.
The parties would form a JV company and have an eventual issued and paid-up capital of RM5mil divided into five million ordinary shares of RM1 each, with SDOE as the major shareholder with a 51% stake and Gas Malaysia, 49%.
The JV company would be engaged in the provision of sale, supply and transportation of BioCNG as well as carrying out design, construction, installation and commissioning works, among others.