TNB aims to build up businesses in three regions


TNB president and CEO Datuk Azman Mohd stressed that the takeover of Project 3B was not a bailout of 1MDB.

PETALING JAYA: Tenaga Nasional Bhd (TNB) is aggressively expanding its global footprint, eyeing opportunities in South-East Asia, South Asia and in the Middle East, said its president and chief executive officer Datuk Seri Azman Mohd.

The company aims to build up businesses in these regions to generate a healthy return on international investment, he said in its latest annual report (2016).

“We aspire to have international investments accounting for 20% of our earnings by 2025.”

To recap, TNB has made two notable overseas investments via a 30% stake in GAMA Enerji, Turkey and a 30% stake in GMR Energy, India for US$300mil this year.

TNB’s interest Turkey would pave the way for TNB to capitalise on latent opportunities in the region’s power plant operation and maintenance services sector.

GAMA Enerji currently has a 840MW natural gas-fired plant and a 45MW wind power plant under construction in Turkey which will come online at the end of 2016. It has also developed and operates a large water conveyance project in Jordan.

GMR Energy owns and operates 2,298MW of coal, gas and solar assets in India.

The acquisition marks TNB’s entry into India’s rapidly expanding power sector with demand for electricity growing between 6% and 7% of the compound annual growth rate, adding 20GW of new capacity annually, an amount equivalent to Malaysia’s current installed capacity.

Beyond the electricity business, TNB is also looking to grow its energy related services such as in the district cooling systems, taking advantage of recognition gained in the Asia-Pacific, and the Middle East.

It was looking to push its plant operation and maintenance services to the Middle East, South Asia and within Asean.

“We are currently servicing clients in Pakistan, Kuwait and Saudi Arabia through our subsidiary TNB Remaco and believe that we are able to grow this business bigger.

“Even as we set our sights on expansion abroad, Malaysia will remain our primary market.”

Azman said TNB continue to install new domestic capacity and for the financial year ended Aug 31, 2016 has brought online a total of 1,882MW with another 3,210MW in the pipeline for commissioning between end 2016 to 2019.


   

Across The Star Online


Air Pollutant Index

Highest API Readings

    Select State and Location to view the latest API reading

    Source: Department of Environment, Malaysia