Friday 29 Mar 2024
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KUALA LUMPUR (April 24): Majuperak Holdings Bhd is proposing to venture into the supply of natural gas and liquefied natural gas (LNG) for power and utilities, cogenerations and district cooling plants. 

The group said its subsidiary, Majuperak Energy Resources Sdn Bhd (MER), intends to set up a special purpose vehicle (SPV) with Petrolife Aero Sdn Bhd, an integrated energy company licensed by the government to import and distribute LNG and natural gas. 

MER will own a 51% stake in the SPV and Petrolife the remaining 49%, under an agreement signed by the two parties, Majuperak said in a filing with Bursa Malaysia. 

It added that the parties intend to collaborate to build and operate cogenerations in Perak, aiming to achieve a target of at least 10 megawatts (MW) for the first year, followed by 20MW and 50MW in the second and third years. 

MER will be responsible for securing and maintaining long-term rights over the land and rights of ways to develop, build and operate the project. 

Majuperak said the proposed venture allows the group to expand its energy business by offering cogeneration units to commercial, office and industrial areas. 

“By partnering with Petrolife, MER would be able to partner a third party access licence holder to import and distribute LNG and natural gas supply in the state of Perak,” it said. 

Majuperak expects the venture to create an additional income stream to enhance the group’s business growth and shareholders’ value.

Majuperak’s share price fell 0.5 sen or 1.64% to 30 sen, giving a market capitalisation of RM84.83 million.

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