09/02/2023 03:08 PM

KUALA LUMPUR, Feb 9 (Bernama) -- Kejuruteraan Asastera Bhd (KAB) and Petronas Gas Bhd have entered into a joint venture to co-own and undertake a RM230 million power plant project in Sabah which will be the sole energy supplier to Petronas’ nearshore floating liquified natural gas facility.

KAB’s wholly-owned subsidiary KAB Energy Holdings Sdn Bhd has signed a share purchase agreement to acquire a 10 per cent stake in Petronas Gas’ subsidiary, Regas Terminal (Lahad Datu) Sdn Bhd, which is responsible for owning and undertaking the power plant project, a statement from KAB said today.

KAB Energy has also signed a shareholders’ agreement with Petronas Gas to assume the role of technical partner in the joint venture.

KAB group managing director Datuk Lai Keng Onn said that jointly owning and undertaking this major clean energy project with Petronas Gas highlights their capabilities in the sustainable energy solutions space.

“We look forward to share our expertise with Petronas Gas to make this power plant a success and contribute to the country’s energy goals. It will also serve as a model development as we pursue more projects in Malaysia and Southeast Asia,” he said.

Regas Terminal will have ownership of the asset on its targeted completion in the first quarter of 2026.

Regas Terminal 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 the commencement of the power plant, KAB would recognise revenue from its role as an engineering, procurement, construction and commissioning contractor from the financial year ending Dec 31, 2023 onwards,” it said.


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