KUALA LUMPUR: Kinergy Advancement Bhd’s engineering, procurement, construction, and commissioning (EPCC) contract – the company’s third energy infrastructure project awarded by Rancha Power Sdn Bhd (RPSB)—has officially reached a key milestone with the completion of the groundbreaking ceremony in Labuan on January 27, 2026, for the 120-megawatt (MW) power plant development, marking the formal commencement of the execution phase.
RPSB is a three-party joint venture among PG Energia Sdn Bhd, a subsidiary of Petronas Gas Bhd, SEC Power Sdn Bhd, a subsidiary of Sabah Energy Corporation Sdn Bhd and Sustainable Power Sdn Bhd, a subsidiary of Sabah Electricity Sdn Bhd.
The Deputy Prime Minister, Datuk Amar Fadillah Yusof, who is also the Minister of Energy Transition and Water Transformation, officiated the groundbreaking ceremony.
Scheduled for commercial operation by January 1, 2028, the 120MW power plant will significantly strengthen Labuan’s electricity supply with a firmer, faster response capacity.
The addition of this plant is expected to improve overall grid stability and reliability, supporting sustained economic and industrial activity while complementing the integration of sustainable energy.
Construction is expected to commence in the first quarter of 2026 and will create employment opportunities for the local community during this phase.
Upon completion, the project will ensure continuity and reliability of the electricity supply and support Labuan’s future energy needs across residential, commercial, and industrial sectors, which reaffirms Kinergy’s position as a power plant EPCC specialist and trusted technical partner for national-grade energy assets.
The construction of the 120MW power plant will be executed by the Kinergy-Sinohydro JV, a strategic partnership between KAB Energy Holdings Sdn Bhd, a wholly owned subsidiary of Kinergy Group, and Sinohydro Corporation (M) Sdn Bhd.
Kinergy executive deputy chairman and group managing director Datuk Lai Keng Onn said the company is powering forward with its second major gas-fired power plant development.
“Aligned with the Sabah Energy Roadmap and Master Plan 2040, the Labuan project further cements Kinergy’s technical track record through the delivery of another facility for key stakeholders such as Petronas Gas and Sabah Electricity, building on the 72MW Sipitang gas engine power plant.
“Within eight years of expanding into the sustainable energy solutions (SES) segment, the group has established a credible, growing execution track record.
“Following its reclassification from Industrial Engineering to Renewable Energy, Kinergy now operates a diversified energy mix portfolio supported by proven EPCC capabilities to deliver complex, large-scale energy infrastructure.
“The group continues to demonstrate its evolution from a traditional electrical engineering contractor into a maturing technical energy player with proven full-cycle delivery capabilities,” he said in a statement.
As the groundbreaking ceremony marks the start of a critical phase, Kinergy is focused on disciplined, safe execution to deliver the asset on schedule, thereby strengthening Labuan’s energy security by providing reliable baseload capacity that supports the increasing integration of intermittent renewable energy.
