Kinergy Advancement secured RM646.3m EPCC contract for Sabah power infrastructure ()
<img src="https://thesun.my/binrepository/398x225/0c0/0d0/none/11808/BCVR/kab_5223632_20250520083657.jpg"><p>KUALA LUMPUR: Kinergy Advancement Bhd’s (KAB) subsidiary, KAB Energy Holdings Sdn Bhd, has bagged a letter of award (LoA) from Rancha Power Sdn Bhd to undertake the engineering, procurement, construction, and commissioning (EPCC) of a 120-megawatt gas engine generator power plant in Labuan, scheduled for completion by the first quarter of 2028.</p><p></p><p>According to a Bursa Malaysia filing, the LoA, dated May 13, 2025, is KAB’s third major energy infrastructure contract win from Petronas Gas Bhd’s Rancha Power Sdn Bhd unit.</p><p></p><p>Rancha Power is a joint venture comprising PG Energia Sdn Bhd, a subsidiary of Petronas Gas, Sustainable Power Sdn Bhd, a subsidiary of Sabah Electricity Sdn Bhd, and SEC Power Sdn Bhd, a subsidiary of Sabah Energy Corporation Sdn Bhd, established to collaboratively manage the development and ownership of this 120MW power plant.</p><p></p><p>The filing noted that the awarded EPCC contract is worth RM646.3 million for a new 120MW dual-fuel gas engine power plant strategically located at Rancha-Rancha Industrial Estate, Labuan, East Malaysia.</p><p> </p><p>This project reinforces East Malaysia’s energy security and ensures long-term regional energy reliability.</p><p> </p><p>KAB’s previous project wins include a joint venture with Petronas Gas for a RM230 million, 72MW power plant in Sabah secured on February 3, 2023.</p><p></p><p>This deal includes a strategic 10% equity stake in Regas Terminal (Lahad Datu) Sdn Bhd, positioning KAB as a key local technical partner.</p><p> </p><p>Notably, on November 6, 2023, KAB secured an RM33.3 million EPCC contract from Pengerang LNG (TWO) Sdn Bhd.</p><p></p><p>This project involved the expansion and transformation of 137,000m³ liquefied natural gas carriers into a floating storage unit (FSU).</p><p> </p><p>Both projects underline KAB’s growing stature and established capabilities in delivering major energy infrastructure.</p><p></p><p>KAB has undergone rapid and successful transformation over the past seven years, notably by the sector reclassification from engineering to energy on January 13, 2025.</p><p> </p><p>Transitioned from a traditional engineering company into a comprehensive sustainable energy solutions (SES) provider, reinforcing sustainable earnings through diversified services.</p><p> </p><p>KAB’s robust technical expertise remains its core strength, clearly defining its unique value proposition in the sustainable energy landscape.</p>
