Petronas Gas Berhad will form a one-way partnership with two Sabah state government companies (GLCs) to develop a 120MW power plant in Labuan.
Its subsidiary, PG Energia Sdn Bhd has signed an agreement with Sustainable Power Sdn Bhd (SPSB) and SEC Power Sdn Bhd for the implementation of the project.
SPSB is a wholly-owned subsidiary of Sabah Electricity Sdn Bhd and SEC Power is a wholly-owned unit of Sabah Energy Corporation Sdn Bhd.
Bursa Malaysia announced that the following power plants are expected to be operational by January 1, 2028.
Meanwhile, PG Energia will be the shareholder of the project with a 60 percent stake, while SPSB and SEC Power will hold 20 percent.
The Ministry of Energy Transition and Water Transformation has approved the development of the power plant via a notification letter dated 21 February 2025.
The joint venture company will be named Rancha Power Sdn Bhd with the project being financed through external and internal financing funds.
Aspects involving installation, testing, commissioning, construction, design, maintenance, operation and facilities of the plant will be fully handled by the three companies.
