KUALA LUMPUR, Sept 6 2016 : Tenaga Nasional Bhd (TNB) has signed a 21-year power purchase agreement (PPA) with Southern Power Generation Sdn Bhd (Southern Power).
Southern Power, a wholly-owned subsidiary of SIPP Energy Sdn Bhd, will construct, own, operate and maintain a 1,440 megawatts gas-fired facility in Pasir Gudang, Johor, said TNB in filing to Bursa Malaysia today.
The facility will consist of two generating blocks, with each generating block having a capacity of 720MW and was target for commercial operation on Jan 1, 2020.
The PPA governs the obligations of the parties to sell and purchase the generating capacity and, to the extent despatched, the electrical energy generated by the facility.
The PPA will commence from the commercial operation date of the first generating block.
It would not have any effect on the issued and paid-up share capital, substantial shareholders’ shareholdings of TNB and on its earnings over the term of the PPA. – Bernama