Sembcorp Industries, through its wholly owned subsidiary Sembcorp Utilities Pte Ltd, has entered into a joint development framework agreement with Indonesian partners PT PLN Energi Primer Indonesia and PT Transportasi Gas Indonesia to establish a hydrogen transportation pipeline connecting Sumatra, the Riau Islands, and Singapore.
The project intends to leverage the expertise of PT Transportasi Gas Indonesia, known for managing natural gas transportation across Indonesia, to develop a regional hydrogen hub. This collaboration is part of a broader effort to explore green hydrogen production, with plans for a facility in Sumatra that could become Southeast Asia’s largest, boasting an annual capacity of 100,000 metric tonnes.
Despite the promising prospects of the project, Sembcorp has stated this development won’t significantly influence the company’s earnings per share or net tangible assets per share for the financial year ending December 31, 2024.
