Malaysia state utility signs deal to transmit energy from Laos to Singapore
Move revives cross-border project, allowing up to 100 megawatts of generation capacity in Laos to supply power to Singapore
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[KUALA LUMPUR] Malaysia’s state-run utility firm has signed a two-year energy agreement to transmit electricity from Laos to Singapore, reviving a South-east Asian multilateral power trade deal that had stalled since 2024.
The Tenaga Nasional Berhad (TNB) in a bourse filing on Wednesday (Jan 14) said that 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.
It will be done using existing transmission links via Thailand and Malaysia.
The first phase of the project was signed in 2022, with a two-year validity period that ended on Jun 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, Laotian state utility Electricite Du Laos will pay TNB for the wheeling services, to transmit energy generated in Laos to Singapore.
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The deal is part of the second phase of the Laos-Thailand-Malaysia-Singapore Power Integration Project, which is a precursor to a broader Asean Power Grid initiative.
It aims to connect all 10 member states, and tackle the region’s growing reliance on fossil fuels. REUTERS
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