TNB inks new power purchase deal with PD Power

Sime Darby Bhd's Port Dickson power station at Tanjung Gemuk, Negeri Sembilan.

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has signed a new power purchase agreement (PPA) with Malakoff Corp Bhd’s indirect wholly-owned subsidiary Port Dickson Power Bhd (PD Power) that provides for a three-year extension to Feb 28, 2019.

The Energy Commission had in December last year given PD Power an extension of the operation of its existing power plant in Tanjung Gemuk, Port Dickson.

In a filing with Bursa Malaysia on Friday, TNB said the new PPA governed the rights and obligations of both parties throughout the term of the extension for the generation and sale of electricity and for PD Power to make the generating capacity available to TNB from its 436MW open-cycle power plant.

“The signing of the PPA will not have any effect on the issued and paid-up share capital and the substantial shareholders’ shareholding of TNB and will have a neutral impact on the earnings of TNB over the term of the extension,” it said.

Malakoff had acquired PD Power from Sime Darby Bhd for RM300mil cash in 2014. The plant has been supplying electricity to TNB under a 21-year PPA that expired last month.

TNB shares gained 2 sen to RM13.20 on Friday, with 10.92 million shares being traded. Malakoff shares, meanwhile, shed 1 sen to RM1.59, with 4.33 million shares changing hands.