KUALA LUMPUR (Nov 3): Malakoff Corporation Bhd (KL:MALAKOF) resumed operations of a 429MW gas-powered electricity generation plant in Lumut, Perak, on Oct 7, three months ahead of a Jan 1 deadline.
The Lumut open cycle gas turbine (OCGT) plant is run by Malakoff subsidiary GB3 Sdn Bhd, and its recommissioning follows the execution of a power purchase agreement (PPA) inked with Tenaga Nasional Bhd (KL:TENAGA) in May. This plant is contracted to run until Dec 31, 2029.
This is the second of three Malakoff power plants to be recommissioned under the Energy Commission’s Project Category 1, which aims to meet rising demand for electricity in Peninsular Malaysia from 2025 to 2029 by recommissioning existing plants.
The first Malakoff power plant to be recommissioned is the a 350MW Prai facility on April 9.
The third facility, run by Segari Energy Ventures Sdn Bhd, is also in Lumut and is expected to come online by July 1 next year.
“With its current open cycle configuration, the plant is able to start up quickly when demand surges, making it a valuable source of peaking capacity and enhancing reserve margin adequacy for the grid,” Malakoff group chief executive officer Syahrunizam Samsudin said in a statement on Tuesday.
Once both Lumut plants are operational, they can provide an additional 1,732MW of generation capacity to the national grid.
"With Prai and GB3 now running, and SEV to follow next year, we are making good use of plants that have served the country well for many years. Extending existing assets is a practical and cost‐efficient way to strengthen energy supply, as the infrastructure is already in place," Syahrunizam added.
At time writing of Malakoff’s shares rose 1.24% to 81.5 sen, valuing the group at RM4.08 billion.