KUALA LUMPUR: Malakoff Corporation Bhd, Malaysia’s largest Independent Power Producers (IPPs), has secured operational extensions for three gas-fired power plants.
With a combined capacity of 2,082MW, these extensions reinforce Malakoff’s role in safeguarding the nation’s electricity supply amid sustained demand and the ongoing energy transition.
Following notification from the Energy Commission, the selected plants will continue operating until Dec 31, 2029, ensuring uninterrupted contribution to the national grid.
The extensions cover facilities operated by Malakoff’s subsidiaries, including two plants in Lumut, Perak — the 1,303MW Combined Cycle Gas Turbine (CCGT) plant owned by Segari Energy Ventures Sdn Bhd (SEV) and the 429MW Open Cycle Gas Turbine (OCGT) plant owned by GB3 Sdn Bhd (GB3) — as well as the 350MW Prai CCGT Power Plant in Penang, owned by Prai Power Sdn Bhd (PPSB).
New Power Purchase Agreements (PPAs) will be entered into with Tenaga Nasional Bhd (TNB) for each plant, enabling Malakoff to continue delivering the required capacity and supplying electricity throughout the extension period.
The SEV Lumut plant has been in operation since 1996, followed by the GB3 Lumut plant in 2001, and the Prai plant in 2003. Together, these assets form a long-established generation base that has consistently supported electricity supply in Peninsular Malaysia over the years. With their combined capacity of 2,082MW, the plants provide dependable and flexible generation, playing a critical role in maintaining grid stability and reserve margins, particularly during peak demand periods.
Commenting on the extension, Malakoff Group chief executive officer Syahrunizam Samsudin said the decision reflects a practical and responsible approach to meeting the nation’s evolving energy needs.
“These power plants have supported the national grid with a consistent performance record over many years. Extending their operations allows proven gas-fired facilities to continue contributing reliable and flexible capacity, particularly during periods of strong demand. This strengthens energy security while maximising the value of existing infrastructure in a cost-efficient manner.”
He added that natural gas remains an important transitional fuel as Malaysia progresses towards a lower-carbon future.
“Compared to other fossil fuel sources, these plants generate lower emissions. By continuing to leverage gas, we are ensuring a stable power supply while actively reducing our carbon footprint, keeping these assets relevant as the national energy mix evolves.”
“CCGT and OCGT plants such as these remain essential during the energy transition due to their efficiency and responsiveness. Their continued operation reflects the high standards consistently applied in their operation and maintenance over the years. The extensions are also expected to contribute positively to Malakoff’s earnings and net assets, underscoring the long-term value of disciplined asset management.”
As Malakoff advances its transformation journey, the extension of its gas power portfolio reflects the group’s commitment to maintaining a reliable energy supply while supporting Malaysia’s long-term energy transition goals, guided by its purpose of ‘Enhancing Life, Enriching Communities’.
