February 1, 2012

TNB and Petronas to build New Gas Plant and LNG Terminal in Sabah

Malaysia's national power producer Tenaga Nasional Bhd (TNB) and state oil firm Petronas will invest in a 2 billion ringgit ($657.46 million) gas plant and liquefied natural gas (LNG) terminal in Borneo island, the Star reported on 2 Feb.

The Star cited outgoing Tenaga Chief Executive Che Khalib Mohammad Noh as saying the 300 megawatts (MW) and LNG terminal in Malaysian state of Sabah will be operational by 2015.

The Malaysian states in Borneo island often suffer frequent electricity disruptions as there is not enough power supply generation.

Che Khalib said the new projects will now replace a planned coal plant that was scrapped about five years ago due to public opposition over its environmental impact.

"We are now starting the environmental impact assessment (EIA) for the new gas plant and terminal, and coming up with the engineering designs soon," he added.

Tenaga officials confirmed the report.

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