Kelington signs supply agreement with Petronas for the sale and purchase of CO2 waste gas


Integrated engineering solution provider Kelington Group Bhd has secured a deal to build a carbon dioxide (CO2) gas purification plant in Malaysia, following a supply agreement with Petroliam Nasional Bhd (Petronas).

In a filing with Bursa Malaysia, Kelington said its 94% owned subsidiary Ace Gases Sdn Bhd had signed a supply agreement with Petronas for the sale and purchase of CO2 waste gas.

Under the scope of the agreement, the Petronas Gas Processing Plant in Kerteh, Terengganu, will supply CO2 waste gas in excess of 50,000 tonnes per year to a new neighbouring gas plant which will be established by Kelington. Kelington will purify and liquefy the waste gas to produce liquid CO2 to be sold to the end users.

The group said the tenure of the agreement is 15 years commencing in 2019, and the renewal is subject to mutual agreement of the parties upon expiry.

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