Malaysia state utility signs deal to transmit energy from Laos to Singapore, reviving cross-border project

Reuters01-14
Malaysia state utility signs deal to transmit energy from Laos to Singapore, reviving cross-border project

KUALA LUMPUR, Jan 14 (Reuters) - Malaysia's state-run utility firm has signed a two-year energy agreement to transmit electricity from Laos to Singapore, reviving a Southeast Asian multilateral power trade deal that had stalled since 2024.

Tenaga Nasional Berhad (TNB) in a bourse filing on Wednesday said the Energy Wheeling Agreement Phase 2, part of a power integration project involving Laos, Thailand, Malaysia and Singapore, will allow up to 100 megawatts of generation capacity in Laos to supply power to Singapore via Thailand and Malaysia, using existing transmission links.

The first phase of the project was signed in 2022 with a two year validity period that ended on June 22, 2024.

Malaysia's energy minister in October last year said that the delay in renewing the deal was due to local political changes in Thailand.

Under an agreement signed on Wednesday, state utility Electricite Du Laos will pay TNB for the wheeling services to transmit energy generated in Laos to Singapore.

The deal is part of the second phase of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, which is a precursor to a broader ASEAN Power Grid initiative aiming to connect all ten member states and tackle the region's growing reliance on fossil fuels.

(Reporting by Ashley Tang; Editing by David Stanway)

((ashley.tang@thomsonreuters.com;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment