Regional LNG: Malaysia, Singapore firms sign MOU to develop Bio-LNG project

Malaysia’s BAC Renewable Energy (BAC RE), Singapore’s Dovechem Group, and Tanjung Langsat Port Terminal (TLP Terminal) have signed a memorandum of understanding (MOU) to establish a large-scale biofuels hub in Johor, Malaysia.

The facility, named the "BAC RE ASEAN Biofuels Storage and Exporting Hub," will focus on Bio-Liquefied Natural Gas (Bio-LNG) and have an annual processing capacity of 350,000 tons. Green investments for the project are expected to reach US$337 million, with funding already partially secured.

Under the MOU, BAC RE will oversee development, Dovechem Group will provide land and manage operations, while TLP Terminal, a subsidiary of Johor Corporation, will handle port logistics. The project will be executed in two phases, beginning with an initial capacity of 33,000 tons per year and storage of 7,500 cubic meters. In the second phase, the facility will expand to include Bio-Methanol storage and processing.

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BAC RE Director Hasnoel Ramly said Tanjung Langsat Port was chosen for its strategic location near the Malacca Strait and Singapore, the world’s largest bunkering hub. The Johor-Singapore Special Economic Zone (JS-SEZ) has also provided incentives to attract foreign capital to the project.

The hub is expected to accelerate the adoption of biofuels in shipping and support the decarbonization of the maritime industry. Malaysia’s palm oil industry, which produces substantial bio-waste, is expected to contribute up to 3.3 million tons of biofuels annually.

The project aligns with Malaysia’s broader strategy to streamline investment through the Invest Malaysia Facilitation Centre Johor (IMFC-J) and the Johor Super Lane project. Biofuels have been identified as a priority sector in Malaysia’s green economy development plan.

Editing by Alexander Ginting