KUALA LUMPUR (Jan 3): Kejuruteraan Asastera Bhd has secured a letter of award (LOA) from Petronas Gas Bhd's (PetGas) unit Regas Terminal (Lahad Datu) Sdn Bhd for the engineering, procurement, construction, and commissioning (EPCC) of a 52-megawatt (MW) power plant and its associated facilities in Sabah.

In a statement to Bursa Malaysia on Tuesday (Jan 3), Kejuruteraan Asastera said the LOA awarded to its unit KAB Energy Holdings Sdn Bhd is for a power plant located at the Sipitang Oil and Gas Industrial Park and will be the sole source of energy supply to Petronas’ upcoming floating liquefied natural gas (ZLNG) project.

It said the ZLNG plant, slated to be Sabah’s first near-shore natural gas facility, has a minimum capacity of two million tonnes per annum.

The contract is for a total non-escalating all-inclusive fixed lump sum of RM230 million.

Kejuruteraan Asastera managing director Datuk Lai Keng Onn said securing the project award from PetGas amplifies Kejuruteraan Asastera’s sustainable energy initiatives undertaken since 2019.

"The power plant, upon completion, will be the single largest gas engine plant in the country, and serve as a crucial power source for Petronas’ upcoming ZLNG plant.

"Furthermore, our joint feasibility studies with PGB (PetGas) show that the power plant is reliable and will achieve significant carbon reduction,” he said.

EPCC works for the power plant will commence in the second quarter of 2023 and is targeted to be completed in the first quarter of 2026.

At the midday break on Tuesday, Kejuruteraan Asastera was unchanged at 39.5 sen with 7.01 million shares done.