Malaysian Utility to Carry Electricity From Laos to Singapore

Tenaga Nasional Bhd (TNB), Electricité Du Laos (EDL), and Thailand’s Electricity Generating Authority of Thailand (EGAT) have signed an agreement to transmit up to 100MW of renewable electricity from Laos to Singapore. The transmission will use existing infrastructure in Thailand and Malaysia as transit countries. This deal is the second phase of the Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP 2.0).

The agreement marks a significant step in regional energy cooperation and doubles the total traded electricity capacity to 200MW when combined with power supplied from Malaysia to Singapore. The initiative supports the ASEAN Power Grid (APG) vision, which aims to connect all 10 ASEAN member states and promote clean energy integration.

The project is also a precursor to a broader Southeast Asian energy grid, addressing the region’s growing energy demand and reducing reliance on fossil fuels.

Why Did the Deal Stumble?

The first phase of the LTMS-PIP project was signed in 2022, but the agreement lapsed in June 2024. According to Malaysia’s energy minister, political changes in Thailand contributed to the delay in renewing the deal. The latest agreement was signed on January 14, 2026, and is valid for two years.

TNB will provide wheeling services for the transmission of electricity from Laos to Singapore. Under the deal, EDL will pay TNB for these services, reinforcing the economic and logistical framework of the initiative.

What Does This Mean for ASEAN Energy Strategy?

The deal aligns with ASEAN's long-term goal of increasing cross-border power trade and reducing carbon emissions. The APG aims to create a more interconnected and resilient energy system across Southeast Asia.

TNB emphasized its commitment to energy transition and regional cooperation, calling the agreement a milestone in advancing the APG vision. EDL and EGAT also expressed support, noting the project’s role in enhancing energy security and sustainability.

The success of LTMS-PIP 2.0 may encourage more countries to participate in similar cross-border power projects, potentially accelerating ASEAN’s shift toward clean energy.

What Are Analysts Watching Next?

Analysts are monitoring whether this agreement will lead to further investments in renewable energy infrastructure across Southeast Asia. The project could set a precedent for future deals involving more ASEAN countries.

TNB has also signed a separate supply agreement with Keppel Electric Pte Ltd in September 2024 to provide renewable electricity to Singapore. Together, these agreements form a supply and wheeling backbone for the project.

Investors are also observing how TNB manages the technical challenges of cross-border energy transmission and whether the project yields long-term financial benefits for the company and its partners.

The deal underscores Malaysia’s role as a regional energy hub and highlights TNB’s strategic importance in the APG. With growing energy demand in Southeast Asia, such projects may become increasingly critical to regional stability and sustainability.