ADVERTISEMENT

Commodities

Petronas Is Said to Consider Selling Stake in Renewable Energy Unit Gentari

Vehicles are refueled at a Petroliam Nasional Bhd. (Petronas) gas station in Shah Alam, Selangor, Malaysia, on Friday, June 10, 2022. Malaysia has begun work on replacing its blanket petrol and cooking oil subsidies with a more targeted approach, as government spending rises to blunt higher living costs. Photographer: Samsul Said/Bloomberg (Samsul Said/Bloomberg)

(Bloomberg) -- Malaysia’s Petroliam Nasional Bhd. is considering selling a minority stake in renewable energy firm Gentari Sdn. to help expand the business, according to people with knowledge of the matter.

Petronas, as the state-owned energy company is known, is working with an adviser and has drawn interest from infrastructure funds and industry peers, the people said, asking not to be identified as the process is private. 

The stake could be worth $300 million to $500 million, the people said, though they added that considerations are preliminary and the size of the sale and Gentari’s valuation are still under discussion. 

Petronas may also decide not to sell, the people said. Petronas didn’t respond to requests for comment. 

Petronas established Gentari in 2022 with the aim of delivering “a suite of renewable energy, hydrogen and green mobility solutions,” it said in a statement at the time. The unit has goals for the year 2030, including having 30 to 40 gigawatts of renewable energy capacity, developing hydrogen projects and supporting electric-vehicle adoption. As of the end of the first half this year, Gentari had 3.6 GW cumulative capacity, of which 2.4 GW was installed. 

--With assistance from Ram Anand.

©2024 Bloomberg L.P.