KUALA LUMPUR: Kejuruteraan Asastera Bhd (KAB) has entered into a joint venture with Petronas Gas Bhd (PGB) to co-own and undertake an earlier announced RM230 million power plant project in Sabah.
The power plant will be the sole energy supplier to Petroliam Nasional Bhd's (Petronas) nearshore floating liquified natural gas facility.
KAB's wholly-owned KAB Energy Holdings Sdn Bhd (KABEH) today signed a share purchase agreement with PGB to acquire a 10 per cent 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 the clean energy project with a leading partner like PGB highlighted the company's capabilities in the sustainable energy solutions space.
"We look forward to share our expertise with PGB 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 in a statement.
KAB said RGTLD would 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.
"Pending 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.