Propel Global Bhd executive director/group CEO Angeline Lee
PETALING JAYA: Propel Global Bhd
entered into a memorandum of understanding (MoU) with Sabah Energy Corporation Sdn Bhd (SEC) and Reservoir Link Energy Bhd to jointly explore the development of a modular gas power plant in Sabah.
In a joint statement, Propel Global and Reservoir Link said the collaboration aims to provide a cost-efficient, low-emission, and rapidly deployable energy solution supporting industrial growth and grid stability across Sabah.
“Under the MoU, Propel Global and Reservoir Link will jointly undertake feasibility studies, social environmental impact assessment, power system study and transmission connectivity as well as financial modelling and analysis with land matters supported by SEC.
“The parties further agree to establish a joint working group (JWG) within 30 days from the date of the MoU to coordinate, evaluate and oversee the activities required under this MoU.”
The parties said the project will be implemented under a zero-capital expenditure structure fully borne by Reservoir Link, with detailed commercial and ownership terms to be defined in a subsequent joint venture (JV) agreement.
“The MoU shall remain in force for two years from the date of the MoU unless earlier superseded by the execution of the JV Agreement or terminated by mutual consent or by either party giving one month’s prior written notice.
“The parties have further agreed to collaborate on an exclusive basis in the state during the term of the MoU and for two years thereafter, and to treat all information exchanged as confidential.”
As part of the collaboration, the parties said they will also support the fuel transformation initiative at project sites by developing, implementing, and operating the project integrating liquefied natural gas (LNG) regasification, gas distribution, and modular power generation.
In the statement, Propel Global executive director / group chief executive officer Angeline Lee said the partnership reflects the group’s commitment to enabling cleaner and more reliable energy solutions for Sabah.
“By integrating LNG regasification with modular generation technology, we aim to support Sabah’s energy transition efforts to achieve cost savings and carbon emission reduction, while contributing to the state’s long-term industrial and economic development.
“Equally important, we are focused on responsible delivery with strong governance and robust environmental and social safeguards to ensure sustainable benefits for Sabah’s communities and industry.”
She added that the collaboration marks a strategic milestone for Propel Global as it continues to diversify into the clean energy and infrastructure space.
“Through partnerships such as this, the group aims to expand its participation in Malaysia’s energy transition ecosystem while reinforcing its presence in East Malaysia’s rapidly growing industrial sector.”
Meanwhile, Reservoir Link executive deputy chairman Thien Chiet Chai said the strategic collaboration marked an exciting step forward for Sabah’s energy transitions.
“By aligning our core expertise and leveraging on the respective resources of our partners, we aim to deliver a comprehensive solution that will strengthen the state’s energy resilience and create lasting value for both the industry as well as benefitting the local communities.
“We remain fully committed towards driving disciplined execution throughout this journey and we look forwards towards delivering more sustainable solutions as part of our efforts to support energy infrastructure.”
He added that the collaboration enables Reservoir Link to leverage its engineering, engineering, procurement and construction, and operations and maintenance competencies on a wider commercial scale.
Thien said this would diversify the group’s income base beyond traditional oilfield services, and position the group as a long-term contributor to Sabah’s transition from diesel to cleaner energy sources.
“We look forward to delivering technical value while unlocking sustainable growth for the group.”
