KEJURUTERAAN Asastera Bhd (KAB) has entered into a joint venture (JV) to co-own and undertake a RM230 million power plant project in Sabah, which will be the sole energy supplier to Petronas Gas Bhd’s (PetGas) nearshore floating liquified natural gas facility.
KAB’s wholly owned subsidiary, KAB Energy Holdings Sdn Bhd (KABEH), signed a share purchase agreement to acquire a 10% stake in PetGas’ subsidiary, Regas Terminal (Lahad Datu) Sdn Bhd, which is responsible for owning and undertaking the power plant project.
KABEH also signed a shareholders’ agreement with PetGas to assume the role of technical partner in the JV.
KAB group MD Datuk Lai Keng Onn said that jointly owning and undertaking this major clean energy project with PetGas highlights its capabilities in the sustainable energy solutions space.
“We look forward to share our expertise with PetGas 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 South-East 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. — TMR / pic source: Petronas’ Facebook