Tuesday 27 Feb 2024
main news image

KUALA LUMPUR (Feb 9): Kejuruteraan Asastera Bhd (KAB) has acquired a 10% stake in a unit of Petronas Gas Bhd (PetGas), which is responsible for a power plant project in Sabah, and will be the sole energy supplier to Petronas’ near-shore floating liquefied natural gas facility that is completing in 2026. 

KAB’s wholly-owned subsidiary KAB Energy Holdings Sdn Bhd (KABEH) signed the share purchase agreement with PetGas to acquire a 10% stake in PetGas’ subsidiary Regas Terminal (Lahad Datu) Sdn Bhd (RGTLD).

The parties on Thursday (Feb 9) entered into the joint venture to co-own and undertake the RM230 million power plant located at the Sipitang Oil and Gas Industrial Park, KAB said in a statement.

KABEH also signed a shareholders’ agreement with PetGas to assume the role of a technical partner in the joint venture, the engineering and energy solutions provider added.

In January, KAB announced that it had secured a letter of award from RGTLD for the engineering, procurement, construction, and commissioning (EPCC) of the power plant.

It said that the plant, slated to be Sabah’s first near-shore natural gas facility, would have a minimum capacity of two million tonnes per annum.

“RGTLD would have ownership of the asset upon its targeted completion in the first quarter of 2026. RGTLD would enter into a power purchase agreement for the supply of power to the upcoming near-shore floating liquified natural gas facility in Sipitang, Sabah over a 20-year concession period,” KAB reiterated on Thursday.

Pending commencement of the power plant, KAB said it would recognise revenue from its role as an EPCC contractor from the financial year ending Dec 31, 2023.

KAB managing director Datuk Lai Keng Onn said: “Jointly owning and undertaking this major clean energy project with a leading partner like PetGas highlights our capabilities in the sustainable energy solutions space. We would like to thank PetGas for the vote of confidence in attaining this milestone.”

Lai added that the power plant will serve as a model development, as KAB pursues more projects in Malaysia and Southeast Asia.

At the time of writing, KAB shares were trading unchanged at 37 sen, valuing the group at RM668.96 million. Meanwhile, shares in PetGas had dipped four sen to RM16.90, valuing the group at RM33.52 billion.

Edited ByLam Jian Wyn
      Text Size