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.
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.
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.
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.
This project reinforces East Malaysia’s energy security and ensures long-term regional energy reliability.
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.
This deal includes a strategic 10% equity stake in Regas Terminal (Lahad Datu) Sdn Bhd, positioning KAB as a key local technical partner.
Notably, on November 6, 2023, KAB secured an RM33.3 million EPCC contract from Pengerang LNG (TWO) Sdn Bhd.
This project involved the expansion and transformation of 137,000m³ liquefied natural gas carriers into a floating storage unit (FSU).
Both projects underline KAB’s growing stature and established capabilities in delivering major energy infrastructure.
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.
Transitioned from a traditional engineering company into a comprehensive sustainable energy solutions (SES) provider, reinforcing sustainable earnings through diversified services.
KAB’s robust technical expertise remains its core strength, clearly defining its unique value proposition in the sustainable energy landscape.
