Sembcorp signs deal for hydrogen pipeline linking Indonesia and Singapore

Hydrogen may soon be transported between the two countries.

Sembcorp Industries (Sembcorp), through its wholly owned subsidiary Sembcorp Utilities Pte Ltd has inked a joint development framework agreement with its Indonesian partners for a possible hydrogen transportation pipeline connecting Sumatra, the Riau Islands in Jakarta, and Singapore.

In a bourse filing, Sembcorp said the deal was signed with PT PLN Energi Primer Indonesia (PT PLN EPI), a sub-holding company of PT PLN (Persero), and PT Transportasi Gas Indonesia (PT TGI), a joint venture company between PT Pertamina Gas Negara Tbk. and Transasia Pipeline Company Pvt. Ltd.

The project will utilise the expertise of PT TGI, the owner-operator of natural gas transportation across Indonesia, to establish the regional hydrogen hub.

Sembcorp and PT PLN EPI previously announced that they are looking into developing a green hydrogen production facility in Sumatra, the largest in Southeast Asia with an annual capacity of 100,000 metric tonnes.

The signing of the agreement is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending 31 December 2024.