Labuan’s new power plant set for Cabinet approval Jan 24

LABUAN: The proposed construction of a new power plant by Petroliam Nasional Bhd (Petronas) to address the persistent power supply disruptions in this duty-free island will be discussed during the Cabinet meeting on Jan 24.

Deputy Prime Minister Datuk Seri Fadillah Yusof said the proposed power plant, spearheaded by Petronas, would be a collaborative effort with the Sabah Energy Commission (SEC) and Sabah Electricity Sdn Bhd (SESB), and the completion target for the project is set for 2027.

“We will present the proposed new power plant project to the Cabinet for approval next week, followed by the next step, wherein the technical team will work on finalising the Letter of Intent (LoI),” he said.

Fadillah, who is also Minister of Energy Transition and Public Utilities, added that the technical team would include representatives from Petronas, the Energy Commission of Malaysia, Sabah Energy Commission, SESB, and several other relevant Sabah government agencies.

“The aim is to ensure that the finalised project encompasses distribution, generation, and demand considerations.

“According to Labuan MP Datuk Dr Suhaili Abd Rahman, Labuan requires at least 150 megawatts, but the current plan is to have a capacity of 130 megawatts,” he said to reporters after visiting the Pipe Replacement Project at the Main Distribution of Water of Pulau Enoe here on Sunday.

He said if the power supply proves to be adequate for Labuan, it could potentially be extended to benefit Sabah.

Fadillah emphasised that the technical nature of the project, stating that a technical committee must be established to finalise issues related to the proposed project.

“The committee’s work is expected to conclude in September,” he said.

Earlier, Fadillah was briefed on various issues related to power supply in Labuan and SESB’s operations at the power station in Patau-Patau.

He said the proposed new power plant project aligns with the announcement made by Prime Minister Datuk Seri Anwar Ibrahim during his visit to Labuan in December of last year. During a meet-and-greet session (in December last year), Anwar had said for a long-term solution to the power supply disruptions in Labuan, the Federal Government proposes that Petronas build a new power station to address the matter on the island.

He said the Federal Government would instruct Petronas to build a new power plant using a fast-track approach to address power supply disruptions.