Kelington Signs Supply Agreement With Petronas

KUALA LUMPUR, Nov 20 (Bernama) – Kelington Group Bhd’s 94 per cent-owned unit, Ace Gases Sdn Bhd, has signed a supply agreement with Petroliam Nasional Bhd (Petronas) for the sale and purchase of carbon dioxide (CO2) waste gas for 15 years commencing 2019. In a filing to Bursa Malaysia Monday, Kelington said, under the agreement, the Petronas’ gas processing plant in Kerteh, Terengganu, would supply CO2 waste gas in excess of 50,000 tonnes per year to a new neighbouring gas plant, which Kelington would set up. “Kelington will purify and liquefy the waste gas to produce liquid CO2 to be sold to end-users,” it said, adding that the purchase of CO2 waste gas would be funded through internally-generated funding. The agreement was subjected to the construction of a new plant at a total estimated investment cost of RM50 million to RM60 million, which was expected to be funded by a combination of internally-generated funds and borrowings, it said. “An announcement on the construction of the plant will be made to Bursa Malaysia Securities Bhd soon,” it said. Kelington said the agreement was on a call-out basis whereby the orders would be issued at the discretion of Petronas, based on the schedule of rates set forth in the agreement. -- BERNAMA