MYEC Consortium (Petronas and TNB) joins PTSC-Sembcorp Consortium project to export renewable energy to Malaysia and Singapore

Regional Initiative to Promote Grid Integration, Energy Security and Emission Reduction in Southeast Asia Kuala Lumpur, 26 May 2025 – Leading energy companies from Malaysia, Singapore and Vietnam have signed a Joint Development Agreement (JDA-02) to explore the possibility of exporting clean electricity from Vietnam to Malaysia and Singapore. This is an important step in enhancing regional energy cooperation, demonstrating the parties’ shared determination to promote ASEAN grid integration and energy transition through sustainable commercial solutions. Under the agreement, Malaysia, through the Malaysian Energy Consortium (MYEC) between Tenaga Nasional Berhad (TNB) and Petroliam Nasional Berhad (PETRONAS), will participate in the renewable energy export project to Singapore of the Vietnam Oil and Gas Technical Services Corporation (PTSC), a member of the Vietnam National Energy Industry Group (Petrovietnam) and Sembcorp Utilities Pte Ltd, a subsidiary of Sembcorp Industries (Singapore). This cooperation is a testament to the efforts to promote the process of energy integration in the region and realize the ASEAN power grid. According to the content of the agreement, Petronas and TNB will participate in the project of PTSC and Sembcorp, the parties will jointly study the feasibility of exporting clean electricity from Vietnam to Malaysia and Singapore through a submarine cable, connecting to the national grid of the Malaysian peninsula, and consider the possibility of additional power sources and storage systems to ensure stability. The parties will closely coordinate with the relevant authorities of the countries involved throughout the project development process, gradually completing the necessary approval procedures to contribute to promoting grid connection and cross-border energy cooperation.

As the ASEAN Chair in 2025, Malaysia plays a key role in promoting regional cooperation to enhance sustainable development and economic growth. “Malaysia’s participation in this initiative demonstrates our strong commitment to the ASEAN Power Grid vision, which aims to enhance the region’s energy security through the development of an electricity transit hub. This tripartite partnership marks a significant step forward in developing cross-border green infrastructure, tapping into Vietnam’s renewable energy potential, and providing a stable and environmentally friendly supply of electricity to communities and businesses. This is an important milestone in our collective efforts towards achieving net zero emissions,” MYEC representatives Datuk Ir. Megat Jalaluddin Megat Hassan, CEO of Tenaga Nasional Berhad and Tan Sri Tengku Muhammad Taufik, CEO of PETRONAS, said in a joint statement.

Mr. Tran Ho Bac - General Director of PTSC and partners at the ceremony

As a member of the Association of Southeast Asian Nations (ASEAN), Vietnam is advancing its strategic vision to become a regional renewable energy hub, with a strong commitment to developing clean energy, reducing emissions and meeting the growing energy demand in Southeast Asia. The Prime Minister of Vietnam has identified offshore wind power as one of the national priorities and is actively directing specific policies to develop this sector. This demonstrates the strong determination and clear strategic direction of the Vietnamese Government in the process of building a sustainable energy system. Through this tripartite cooperation, Vietnam aims to open up new economic opportunities, promote green growth, create high-quality jobs, and reinforce ASEAN's common commitment to a sustainable, low-emission energy ecosystem. “This agreement demonstrates the role of PTSC in particular and PVN in general in realizing energy transition strategies. We expect this agreement to be implemented effectively, as this will be an important milestone, marking the beginning of renewable energy investment in Vietnam,” said Mr. Tran Ho Bac – General Director of PTSC.

Singapore aims to import around 6GW of low-emission electricity by 2035, equivalent to about a third of the country’s total electricity demand by that date. Connecting regional grids will not only boost renewable energy development but also play a key role in realising the ASEAN power grid vision. Mr. Wong Kim Yin, Group CEO of Sembcorp Industries, said: “We are honoured to be part of this groundbreaking initiative, which demonstrates our strong commitment to regional cooperation. This agreement underscores Singapore’s strategic role as an energy consumption hub and a key player in facilitating cross-border electricity imports to support emissions reduction targets. Sembcorp will continue to contribute to ASEAN’s low-emission energy transition through joint infrastructure development and strengthening partnerships.” The agreement aims to establish a scalable cross-border renewable energy cooperation model in Southeast Asia, thereby positioning the region as a global role model for collaborative decarbonisation and energy transition solutions. The formal handover ceremony between MYEC, PTSC and Sembcorp took place on the sidelines of the ASEAN Summit in Kuala Lumpur, Malaysia on 26 May 2025. This event marks an important first step in the implementation of the tripartite cooperation, affirming the shared commitment to promote cross-border clean electricity trade. It is also an important milestone, demonstrating the shared determination to realise the vision of an ASEAN power grid and enhance regional energy connectivity in a more sustainable and resilient manner.

Tran Thi Huyen Trang

Source: https://www.ptsc.com.vn/tin-tuc/tin-ptsc-1/san-xuat-kinh-doanh/cac-tap-doan-nang-luong-hang-dau-tu-malaysia-viet-nam-va-singapore-cong-bo-lien-minh-ba-ben-thuc-day-cung-ung-nang-luong-tai-tao-xuyen-bien-gioi