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Kelington's liquid carbon dioxide plant begins operations

Last Update: 23/10/2019

KUALA LUMPUR, Oct 23  -- Integrated engineering solutions provider Kelington Group Bhd’s liquid carbon dioxide (CO2) plant in Kerteh, Terengganu, has commenced operations, marking the group’s foray into the supply of industrial gases.

The new state-of-the-art plant will purify and liquefy the CO2 waste gas supplied by Petroliam Nasional Bhd’s (Petronas) Gas Processing Plant to produce food-grade liquid CO2.

“To ensure uninterrupted supply of raw material, Kelington had locked in a 15-year supply agreement with Petronas to acquire the CO2 waste gas,” it said in a statement.

Kelington had invested a total capital expenditure of approximately RM30 million to establish the liquid CO2 plant and its supporting assets such as transportation vehicles and storage tanks.

Liquid CO2 is widely used in the food and beverage (F&B) industry for making carbonated drinks, as well as refrigeration and freezing of food, as well as used by the fabrication and construction industries for welding.

Chief executive officer Raymond Gan said the liquid CO2 produced is of food-grade quality, providing a significant competitive advantage to the group.

“We see tremendous potential for us to fill the supply and demand gap in markets locally and overseas where supply is inadequate or does not meet the high-quality standards required by the F&B industry,” he said.

He said with a total production capacity of up to 50,000 tonnes of liquid CO2 per year, the group would gradually scale up the plant utilisation rate over the next few years.

The supply of industrial gases is undertaken by the group’s 97 per cent-owned subsidiary, Ace Gases Sdn Bhd.

“Over the medium term, we aim to accelerate the growth of our industrial gases division by pursuing other business opportunities within the sector.

“Our internal target is to grow the contribution from the industrial gases division to represent one-third of the group’s total revenue in five years’ time,”  he added.



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