Singapore | December 16, 2025 – Straits Bio-LNG Pte Ltd, a Singapore-based leader in renewable marine fuels, has officially entered into a Heads of Agreement (HOA) with China Huanqiu Contracting & Engineering Corporation (HCQ) to develop a flagship liquefied biomethane plant in Malaysia. The agreement, signed in Singapore, marks a major step in establishing a scalable supply of carbon-negative Bio-LNG for the global shipping industry.
The agreement, signed in Singapore, establishes an exclusive partnership for Engineering, Procurement, Construction, and Commissioning (EPCC) services. This collaboration ensures a seamless integration of Chinese high-end engineering expertise with the growing demand for renewable marine fuels in the ASEAN region.
Strategic Location: Maharani Freeport
The new facility will be situated within the Maharani Freeport in Muar, Johor. This location offers significant strategic advantages:
- Prime Logistics: Positioned along the Straits of Malacca, providing 24/7 access for ship-to-ship (STS) bunkering.
- Policy Support: Located within Malaysia’s first duty-exempted energy freeport, benefiting from favorable fiscal incentives.
- Phased Development: The project will be constructed in two phases, specifically designed to convert organic waste into high-value Bio-LNG to fill the regional clean energy supply gap.
Technical & Environmental Impact
The plant will focus on upgrading biogas derived from agricultural waste, specifically from the palm oil industry, into liquefied biomethane (LBM). As a “carbon-negative” fuel, this Bio-LNG will provide a scalable pathway for shipowners to meet IMO 2030 and 2050 decarbonization targets without requiring modifications to existing LNG-fueled vessels.
“This cooperation model lays a solid foundation for the project’s advancement, clarifying the rights and technical responsibilities of both parties as we work to optimize the regional energy structure,” stated a representative from HCQ during the signing.
About Maharni Energy Gateway
Maharani Energy Gateway (MEG) is a privately owned Malaysian master developer and the force behind Maharani Freeport. Specialising in ports, marine services and O&G trading, MEG’s capabilities span deep-water seaport development, STS operations, bunkering, renewable energy and energy data centres, supporting regional growth while expanding its global footprint through strategic partnerships.
About Maharani Freeport
Maharani Freeport is Malaysia’s first duty-exempted energy freeport, developed by Maharani Energy Gateway (MEG) to anchor the nation as a global hub for energy and maritime services. Spanning 3,200 acres across three reclaimed islands, the Maharani Freeport integrates an energy hub, deep seaport, industrial park and financial hub, offering world-class infrastructure, natural deep-water access and competitive incentives to attract global investment and drive long-term economic growth.
About Straits Bio-LNG Pte Ltd
Headquartered in Singapore, Straits Bio-LNG is led by industry veterans with deep expertise in shipping, LNG terminal operations, and offshore mooring. The company’s mission is to use bio-methane to decarbonize LNG, viewing it as the most cost-competitive and abundantly available alternative fuel for the energy transition.
Source: Straits Bio-LNG