KUALA LUMPUR (Jan 30): Malakoff Corporation Bhd (KL:MALAKOFF) said the Energy Commission has given the nod for its three gas power plants with an aggregate capacity of 2,082MW to continue operations until December 31, 2029.

In a statement, Malakoff said the extension enables these plants to continue supplying electricity to the national grid, supporting Malaysia’s ongoing energy needs amid sustained demand and transition.

The extensions cover the two plants in Lumut, Perak: the 1,303MW Combined Cycle Gas Turbine (CCGT) power plant owned by Segari Energy Ventures Sdn Bhd (SEV), and the 429MW Open Cycle Gas Turbine (OCGT) power plant owned by GB3 Sdn Bhd (GB3) as well as the 350MW CCGT Prai Power Plant in Pulau Pinang, owned by Prai Power Sdn Bhd (PPSB). 

"New Power Purchase Agreements (PPAs) will be entered into with Tenaga Nasional BHd (KL:TENAGA) for each plant, allowing Malakoff to generate the required capacity and deliver electricity throughout the extension period," read the statement.

Commenting on Malakoff’s success in securing the extended lifeline for the gas power plants, Malakoff’s Group Chief Executive Officer, Syahrunizam Tan Sri Samsudin said “Extending their operations allows proven gas-fired facilities to continue contributing reliable and flexible capacity, particularly during periods of strong demand. 

"This supports energy security while making effective use of existing infrastructure in a cost-efficient manner."

From another perspective, Syahrunizam said CCGT and OCGT plants such as these continue to play an important role during the energy transition by providing efficient and responsive generation.

"Their continued operation reflects the consistent standards applied in their operation and maintenance over the years. 

"The extensions are also expected to contribute positively to Malakoff’s earnings and net assets over the extension period, highlighting the long-term value of disciplined asset management”.   

The SEV Lumut power plant has been in operation since 1996. The GB3 Lumut power plant commenced operations in 2001 while the Prai power plant commenced operations in 2003. 

These gas plants represent a long-standing generation base that has consistently supported electricity supply in Peninsular Malaysia over the years. 

With a combined capacity of 2,082MW, these plants collectively provide dependable and flexible generation that helps maintain grid stability and reserve margin, particularly during periods of high electricity demand.