KUALA LUMPUR (Feb 3): Reservoir Link Energy Bhd (KL:RL) has signed an initial pact with a Sabah state agency and an engineering services firm to explore development of a gas-fired power plant.

Under the terms of the non-binding agreement, Reservoir Link, together with Sabah Energy Corp Sdn Bhd and Propel Global Bhd (KL:PGB), will undertake feasibility studies and other analysis related to the proposed project that may integrate regasification, gas distribution and power generation.

The project is aimed at delivering a cost-efficient, lower-emission and rapidly deployable energy solution, using available gas supplies in line with government allocation and availability, Reservoir Link said in a bourse filing.

Financial and operational details of the proposed plant were not disclosed.

Sabah Energy Corp serves as Sabah’s principal energy utility and infrastructure arm, overseeing the development and commercialisation of the state’s natural gas resources.

A joint working group comprising representatives from all three parties will be set up within 30 days to coordinate project planning and oversee the feasibility phase.

The project will be implemented under a ‘zero capital expenditure’ structure fully borne by Reservoir Link, with detailed commercial and ownership terms to be defined in a joint venture agreement to be signed later.