Singapore’s YTL PowerSeraya has signed a sales and purchase agreement with Malaysia’s BAC Renewable Energy (BACRE) for the supply of bio-LNG - marking the first physical bio-LNG deal in Asia, the companies confirmed on 4 November.
The agreement, concluded under Singapore’s new 'biomethane sandbox' launched by the Energy Market Authority and the Economic Development Board on 27 October, is designed to pilot biomethane imports for power generation and industrial use.
“This deal represents the first physical bio-LNG contract in Asia,” said Norzaifizy Khalid Nordin, BACRE’s business development director.
The Malaysian company will produce and aggregate bio-LNG across the ASEAN region and develop the associated logistics chain for delivery.
BACRE is advancing renewable gas projects in Malaysia and neighbouring markets, and plans to establish small-scale liquefaction plants across Southeast Asia.
It also intends to charter a small-scale LNG carrier to transport bio-LNG, including for marine bunkering applications.
YTL PowerSeraya, one of Singapore’s largest electricity producers with 3,100 MW of licensed generation capacity - roughly 30 % of the national total - said the move aligns with Singapore’s ambition to diversify its low-carbon energy mix.
The deal follows a series of biomethane-related announcements during Singapore International Energy Week 2025, signalling the city-state’s readiness to integrate renewable gases into its supply chain.
As a price benchmark, Platts assessed the Rotterdam subsidised bio-LNG bunker price on 4 November at €23.45/MMBtu, a premium of €13.83/MMBtu over conventional Northwest Europe LNG prices.
Asia’s first physical bio-LNG supply deal signed under Singapore’s biomethane pilot
