BAC RE, TLP Terminal and Dovechem join forces on new biofuel hub at Tanjung Langsat Port

February 11, 2025, by Naida Hakirevic Prevljak

Malaysia’s biofuel producer BAC Renewable Energy (BAC RE) has signed a memorandum of agreement (MOA) with compatriot terminal operator TLP Terminal and Singapore-based bulk liquid storage services provider Dovechem Group to develop a bio-LNG and biomethanol hub.

The future hub will be located at TLP Terminal-operated Tanjung Langsat Port, Malaysia.

“Our hub will cater to the growing demand for ISCC EU-certified bio-LNG from the maritime sector in the biggest bunker market in the world, i.e Singapore & Malaysia combined, which is a major stop in the Far East-Europe shipping route,” Norzaifizy K., Business Development Director- BACRE, told Offshore Energy.

The biofuel hub will be developed in phases, with the first phase—expected to cost MRY 150 million (about $33.6 million)—comprising an initial bio-LNG storage capacity of up to 7,500 cbm and a production of 33,000 tons per annum.

“We are looking to have our first ship-to-ship (STS) fuelling by 2027,” Hasnoel Ramly, BAC RE Director and Shareholder, was cited by The Edge Malaysia as saying.

Subsequently, production is anticipated to reach up to 350,000 ton per annum. The ultimate goal is to create a broader biofuel ecosystem, unlock new opportunities, and attract investments, according to Ramly.

“We estimate that the potential biogas-to-bioLNG supply from palm oil waste across the region could reach 3.3 million tonnes annually. The hub is designed to capitalise on this abundant feedstock supply and facilitate the broader adoption of bioLNG in maritime operations,” the companies were quoted as saying.

Tanjung Langsat Port is strategically located at the heart of South East Asia, near the Strait of Malacca and Singapore, the world’s busiest transshipment hub and largest bunkering port. The port is part of the Eastern Gate Development, one of the five main economic corridors in Iskandar Malaysia (IM).