KAB, Petronas Gas seal joint venture for RM230m power plant in Sabah
09 Feb 2023
Engineering and energy solutions provider Kejuruteraan Asastera Bhd (KAB) and Malaysia’s leading gas infrastructure and utilities company Petronas Gas Bhd (PGB) today entered into a joint venture to co-own and undertake an earlier announced RM230 million power plant project in Sabah, which will be the sole energy supplier to Petroliam Nasional Bhd’s (Petronas) nearshore floating liquified natural gas facility.
KAB’s wholly owned subsidiary KAB Energy Holdings Sdn Bhd (KABEH) signed a share purchase agreement with PGB to acquire a 10% stake in PGB’s subsidiary Regas Terminal (Lahad Datu) Sdn Bhd (RGTLD), which is responsible for owning and undertaking the power plant project. KABEH also signed a shareholders’ agreement with PGB to assume the role of technical partner in the joint venture.
KAB group managing director Datuk Lai Keng Onn said: “Jointly owning and undertaking this major clean energy project with a leading partner like PGB highlights our capabilities in the sustainable energy solutions space. We would like to thank PGB for the vote of confidence in attaining this milestone.”
He added that they looked forward to sharing their expertise with PGB to make this power plant a success and contribute to the country’s energy goals as it will also serve as a model development as they pursue more projects in Malaysia and Southeast Asia.
RGTLD will have ownership of the asset upon its targeted completion in the first quarter of 2026. RGTLD will enter into a power purchase agreement for the supply of power to the upcoming nearshore floating liquified natural gas facility in Sipitang, Sabah over a 20-year concession period.
Pending commencement of the power plant, KAB will recognise revenue from its role as an EPCC contractor from the financial year ending Dec 31, 2023 onwards.
Source: The Sun Daily