Majuperak expands energy business through JV with Petrolife
24 Apr 2020
Majuperak Holdings Bhd (MHB), a subsidiary of the Perak State Development Corporation, is setting up a joint venture (JV) with Petrolife Aero Sdn Bhd to supply natural gas and liquefied natural gas (LNG) to power commercial, office and industrial areas in the state.
MHB’s unit Majuperak Energy Resources Sdn Bhd and the LNG importer inked the JV agreement today, which will entail the development of a cogeneration (cogen) facility.
“The cogen plant combines a conventional gas power plant and a process steam plant to provide both electricity and heat from a single power plant,” MHB chief executive officer Nizran Noordin said in a statement.
He said the cogen plant would save costs for customers and provide an incentive for companies to build facilities in Perak.
“Combining our respective expertise in the energy sector, Petrolife brings vast experience in handling multiple upstream projects with multinational oil companies, local companies and government agencies,” he said.
In a filing with Bursa Malaysia, MHB said the two parties would set up a special purpose vehicle (SPV) for the project, with MHB owning a majority stake of 51 per cent.
The SPV is expected to be established within 150 days of the JV agreement, with any extension to be mutually agreed on by both parties.
It added that the two parties targeted at least 10 megawatts (MW) for the first year, 20 MW for the second year and 50 MW for the third year for the project.