TNB, Indonesian utility in MoU on power plant in Kalimantan

PETALING JAYA: Tenaga Nasional Bhd (TNB) has entered into a memorandum of understanding (MoU) with Indonesia’s state-owned utility PT PLN (Persero) for the proposed development of a 2x200MW coal-fired power plant in Kalimantan, Indonesia.

The MoU includes the supply and export of electricity from the proposed power plant to Sabah, according to TNB’s filing with Bursa Malaysia.

TNB said the project is in line with its global expansion to secure new overseas generation capacity and its efforts to meet the rising demand for electricity in Sabah.

“The signing of the MoU is expected to be a win-win venture for both countries through the enhancement of bilateral cooperation and improvement in power supply stability for Sabah and Kalimantan.”

TNB holds an 83% stake in Sabah Electricity Sdn Bhd, which provides electricity generation, transmission, and distribution services. The remaining 13% stake is owned by the Sabah government.

The MoU is for two years, whereby the parties involved will start exploring and studying the best business models, associated risks and financing options in relation to the project.

The project was mooted by Prime Minister Datuk Seri Najib Abdul Razak and Indonesian President Joko Widodo when they met during their bilateral meeting on the sidelines of the Indian Ocean Rim Association summit in Jakarta in March this year.

TNB’s share price gained 2 sen or 0.1% to close at RM14.84 on 16.52 million shares done yesterday.