Energy Commission issues conditional letter of award to Ranhill for Sabah power plant

PETALING JAYA: The Energy Commission (ST) today issued a Conditional Letter of Award (CLOA) dated Feb 12, 2018 for the development of a 300MW combined cycle gas turbine power plant in Sandakan to the consortium consisting SM Hydro Energy Sdn Bhd (SMHE), a unit of Ranhill Holdings Bhd.
SMHE is currently evaluating the terms and conditions of the CLOA and Ranhill will make the necessary announcement to Bursa Malaysia as and when the decision to accept the award is made.
To recap, a consortium led by then an associate of Ranhill submitted a proposal for the development of a combined cycle gas turbine power plant to Kementerian Tenaga, Teknologi Hijau dan Air (KeTTHA) in April 2016.
In September 2016, the EC notified Ranhill of the decision by the federal government made on July 27, 2016 to approve the proposal for the development of 300MW combined cycle gas turbine power plant submitted to KeTTHA.
The consortium was instructed to commence negotiations with Petroliam Nasional Bhd and the company identified by the government to develop the Trans-Sabah Gas Pipeline, to ascertain the terms and conditions of the gas supply required for the project. A letter of award was to be issued by the ST after the terms of the gas supply agreement were determined.
The group's share price closed unchanged at 69.5 sen with some 96,000 shares changing hands.