Sabah Energy Corporation (SEC) has signed multiple gas sales agreements with major investors – as Petronas builds closer decarbonisation links with Japan.

The first involves a long-term deal between SEC and SBH-Kibing Solar New Materials (M) Sdn Bhd for a silica sand processing and solar panel manufacturing project.

SEC also signed a GSA with SK Nexilis Malaysia, a leading manufacturer of copper foil for batteries and flexible copper clad laminate for the display parts industry (pictured).

Other agreements signed for gas supply were with IPPs Kimanis Power Plant, SPR Energy (M), Ranhill Powertron Sdn Bhd, Ranhill Powertron II and Sepangar Bay Power Corporation.

Meanwhile Petronas has signed a Memorandum of Cooperation (MoC) with Japan Organization for Metals and Energy Security (JOGMEC) to cooperate in energy transition initiatives towards achieving respective energy transition and decarbonisation targets.

The initiatives include potential collaboration in green/blue hydrogen and fuel ammonia development, carbon capture and storage (CCS), as well as greenhouse gas (GHG) emissions management.

The cooperation also aims to further enhance technical tie-ups and competencies in low-carbon technologies, while spurring business opportunities and providing technical and financial support for Japanese companies to participate in Petronas’ projects, both within and outside of Malaysia.

Petronas President and Group CEO, Datuk Tengku Muhammad Taufik and JOGMEC Chairman and CEO, Tetsuhiro Hosono signed the MoC for their respective companies. The document exchange was witnessed by Malaysia’s Minister of Economy Mohd Rafizi Ramli and Japan’s Economy, Trade and Industry Minister, Yasutoshi Nishimura.

Across Asean, hydrogen, mostly grey hydrogen, is utilised mainly in manufacturing processes, for fertiliser in agriculture, in methanol production, and the steel industry.

Malaysia’s national energy policy (2022-2040) acknowledges that hydrogen plays an important role in the global energy transition.