Petronas Gas to raise RM1.2 bln for Kimanis Power Plant project

KUALA LUMPUR: Gas distributor, Petronas Gas Bhd (PGB), plans to raise RM1.2 billion either through a term loan or sukuk bond to part finance the 300-megawatt gas-fired Kimanis Power Plant in Sabah.

The project financing will be 80 per cent of the total cost of the RM1.5 billion power plant, while the remaining 20 per cent will be funded via equity.

Its chairman Datuk Anuar Ahmad said PGB is in talks with both local and foreign banks to finalise details for the project financing.

The power purchase agreement for the plant will take place soon, he said after the company’s Annual General Meeting here, today.

The power plant, which will be the largest independent power producer in Sabah, is jointly developed through a 60:40 venture between PGB and NRG  Consortium (Sabah) Sdn Bhd, the energy arm of Yayasan Sabah.

The joint venture company, Kimanis Power Sdn Bhd (KPSB), signed a contractual service agreement with the  consortium of GE Power Systems Malaysia and GE Energy Parts International in December last year.

The engineering, procurement, construction and commissioning (EPCC) contract was signed in March this year between KPSB and the consortium of CTCI Corp, CTCI Malaysia, Synerlitz and SCHB Engineering, said PGB in its annual report.

Located over 21 hectares, the power plant is scheduled to be completed in end-2013, to meet Sabah’s increasing electricity demand.

As for the re-gasification plant in Melaka, Anuar said it is expected to be operational in the middle of next year, and will contribute 10 per cent to annual revenue.

On capital expenditure, PGB chief executive officer Samsudin Miskon said the company has set aside RM800 million for this year, and between RM800 million-RM1 billion next year for this purpose from internal funds.

The fund will be utilised for among others, Plant Rejuvenation and Revamp (PRR) two and three and also the EPCC of the Kimanis, he added.

On the listing of Gas Malaysia Sdn Bhd, Anuar said as a shareholder, PGB has agreed to it but was unsure of when it would take place.

“I think it will be sometime this year (but not sure),” he said.

PGB reported a 53 per cent increase in pre-tax profit to RM1.9 billion for the year ended March 31, 2011 from the  RM1.244 billion, registered previously.

Revenue was higher at RM3.525 billion, from the RM3.222 billion recorded previously, due to higher gas  transportation income and utilities sales.

Its share price stood at RM13.48, down two sen as at midday close. – Bernama

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