KUALA LUMPUR: Malakoff Corporation Bhd
has entered into a reservation agreement (RA) with Mitsubishi Power Ltd for the reservation of two sets of M701JAC gas turbines and gas turbine generators.
In a filing with Bursa Malaysia today, the company said the equipment is intended for use in a new 1,400-megawatt (MW) gas-fired power plant project in the southern region of Peninsular Malaysia.
"The agreement grants Malakoff the right to reserve manufacturing and delivery slots for the equipment prior to finalising the engineering, procurement, construction and commissioning (EPCC) contract for the project, contingent upon the execution of a definitive supply agreement under the terms of the RA.
"Due to the commercially sensitive nature of the detailed commercial terms, which will be outlined in the supply agreement, the company is not in a position to disclose those details at this stage,” it said.
Malakoff said the RA also grants the company the right to reserve an additional two gas turbines, intended for deployment in another 1,400 MW combined-cycle power plant project in the northern region.
"The execution of the RA enables Malakoff to secure the equipment in advance, thereby mitigating supply chain and scheduling risks, and increasing the likelihood of timely execution of the project.
"The execution of the RA is not expected to have any material impact on the net assets or earnings of the group for the financial year ending Dec 31, 2025,” it added. - Bernama
