Produces Industrial Gas Linked to Gas Malaysia’s grid

JOHOR BAHRU, June 1 (Bernama) -- Johor Plantations Berhad (“Johor Plantations”) recently commenced commercial operations at its first biomethane plant located in Sedenak, Johor. The plant which is linked to Gas Malaysia Berhad’s (“GMB”) natural gas distribution network marks a new milestone towards Johor Plantation’s ambition to provide sustainable energy solutions in line with the United Nations’ Sustainable Development Goal 7, to ensure access to affordable, reliable, sustainable and modern energy for all. Johor Plantations is among the pioneering companies in Malaysia to build a biomethane plant and supply it to Gas Malaysia. 

The gas purchase agreement signed between Johor Plantations’ subsidiary, Kulim Green Energy Venture Sdn Bhd (“KGEV”) and GMB’s subsidiary, Gas Malaysia Virtual Pipeline Sdn Bhd (“GMVP”) was formalised on 8 October 2019. Through this agreement, GMVP will procure biomethane from KGEV for a 15-year contract period enabling it to secure a steady supply of green gas. With a project value of approximately RM25 million, the initiative aims to deliver a minimum annual volume of 250,000 MMBtu of biomethane gas to GMVP which will also contribute to the circular economy and promote sustainable energy. 

En. Ahmad Hashimi Abdul Manap, Gas Malaysia Group Chief Executive Officer said, “As our business focus progressively transitions towards sustainable practices, having the right partnership with similar motivation is indeed valuable. We look forward to a successful venture with our business partner and hope our efforts will be a benchmark, inspiring and encouraging other palm oil millers to explore into renewable energy. We recognise the immense potential in renewable energy and based on this encouraging backdrop, we are hoping to capitalise on it as we move forward.”

Mohd Faris Adli Shukery, Managing Director of Johor Plantations, said “This investment aligns with our long-term strategy and reflects our belief in the potential of biomethane commercialisation. It also signifies Johor Plantations' commitment to diversifying our business lines and venturing into green technology. We firmly believe that the production of renewable energy complements our oil palm business, and contributes not only to our financial performance but also to our environmental sustainability." 

The production of biomethane gas by Johor Plantations represents a significant step towards reducing greenhouse gas emissions and promoting a cleaner energy landscape in the state. This initiative aligns with Johor Plantations’s aspiration to achieve net-zero carbon emissions by 2050, in accordance with Malaysia's Carbon Aspirations. Johor Plantations remains committed to exploring innovative solutions and leveraging its expertise in the palm oil industry to contribute to a more sustainable future and foster circular economy initiatives. 

About Gas Malaysia Berhad 

Gas Malaysia Berhad, a member of MMC Corporation Berhad, was established on 16 May 1992 to sell, market and distribute natural gas as well as to construct, operate and maintain the Natural Gas Distribution System (“NGDS”) within Peninsular Malaysia. Gas Malaysia is licensed under the Gas Supply Act, 1993 (“GSA”) by the Suruhanjaya Tenaga (“ST”), with the approval of the Minister, to supply and sell reticulated natural gas in Peninsular Malaysia. On 15 December 2000, Gas Malaysia was granted the licence to supply and sell reticulated Liquefied Petroleum Gas (“LPG”). This licence further expands Gas Malaysia’s business in the supply of reticulated LPG to commercial and residential sectors within Peninsular Malaysia. Gas Malaysia currently operates and maintains about 2,700 kilometres of Natural Gas Distribution System network across Peninsular Malaysia, supplying natural gas and LPG to over 1,000 industrial customers, about 1,800 commercial customers and over 20,000 residential customers. 

In line with our target of delivering sustainable value creation, we prepared ourselves to transition to a new business landscape with the implementation of the Third-Party Access (“TPA”) system introduced by the government to liberalise the natural gas market. Gas Malaysia Berhad divided its operations into two distinct entities: the distribution arm (Gas Malaysia Distribution Sdn Bhd) and the shipment arm (Gas Malaysia Energy and Services Sdn Bhd), with the former being responsible for the gas distribution business and the latter for the retailing part of the gas business. 

For more information, please visit www.gasmalaysia.com 

About Johor Plantations Berhad 

Johor Plantations Berhad (formerly known as Mahamurni Plantations Sdn Bhd) is a subsidiary of Kulim (Malaysia) Berhad, a Johor Corporation (JCorp) company. The principal activities of Johor Plantations are oil palm cultivation and the processing of fresh fruit bunches into crude palm oil and palm kernel. It owns and manages plantations and mills in Malaysia, focusing on the state of Johor. The company is also involved in managing estates, seeds production, agricultural and landscaping supplies as well as machinery and parts for agricultural use. It also operates renewable energy facilities and provides safety and health training and related services. 

Johor Plantations was incorporated in Malaysia on 21 March 1978 as a private limited company under the name of Yule Catto Plantations Sdn Bhd. The company changed its name to Mahamurni Plantations Sdn Bhd on 12 May 1993. In 1994, KULIM acquired 100% equity in the company from JCorp. The company changed its name to Johor Plantations Sdn Bhd on 12 February 2023 and converted to a public limited company on 20 February 2023.

For more information, please visit www.johorplantations.com

SOURCE: Johor Plantations Berhad

FOR MORE INFORMATION, PLEASE CONTACT: 
Gas Malaysia Berhad
Name: En. Kamarul Ariffin Ibrahim
Head of Corporate Affairs Department
Tel: +603 5192 3000 (Ext: 2200) / 019 313 6840
Email: kamarulariffin@gasmalaysia.com

Johor Plantations Berhad
Name: Anwar Mahbob
Head of Corporate Strategy
Tel: 012-229 8981
Email: anwar.mahbob@johorplantations.com 

Name: Dalilah Ibrahim
Head of Corporate Communications
Tel: 012-328 1727
Email: dalilah@johorplantations.com 

--BERNAMA