Hydrogen may soon be transported between the two countries.

Sembcorp Industries (Sembcorp), through its wholly owned subsidiary Sembcorp Utilities Pte Ltd has inked a joint development framework agreement with its Indonesian partners for a possible hydrogen transportation pipeline connecting Sumatra, the Riau Islands in Jakarta, and Singapore.

In a bourse filing, Sembcorp said the deal was signed with PT PLN Energi Primer Indonesia (PT PLN EPI), a sub-holding company of PT PLN (Persero), and PT Transportasi Gas Indonesia (PT TGI), a joint venture company between PT Pertamina Gas Negara Tbk. and Transasia Pipeline Company Pvt. Ltd.

The project will utilise the expertise of PT TGI, the owner-operator of natural gas transportation across Indonesia, to establish the regional hydrogen hub.

Sembcorp and PT PLN EPI previously announced that they are looking into developing a green hydrogen production facility in Sumatra, the largest in Southeast Asia with an annual capacity of 100,000 metric tonnes.

The signing of the agreement is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending 31 December 2024.