THE potential construction of a new power plant by Petronas aimed at resolving ongoing power supply issues on the duty-free island will be a subject of discussion during the cabinet meeting scheduled for January 24, according to Deputy Prime Minister Fadillah Yusof.

He highlighted that the proposed power plant, led by Petronas, would involve collaboration with the Sabah Energy Commission (SEC) and Sabah Electricity Sdn Bhd (SESB), with an anticipated project completion date set for 2027.

“We will present the proposed project to the cabinet next week, followed by the next step, wherein the technical team finalise the Letter of Intent (LoI),” he said.

Fadillah, who is also minister of energy transition and public otilities, said the technical team would include representatives from Petronas, the Energy Commission of Malaysia, SEC, SESB, and several other relevant Sabah government agencies.

“The aim is to ensure the finalised project encompasses distribution, generation, and demand considerations.

“According to Labuan MP Suhaili Abd Rahman, the Federal Territory requires at least 150mw, but the current plan is to have a capacity of 130mw,” he told reporters after visiting the pipe replacement project at the main distribution of water of Pulau Enoe today.

He said if the power supply proves to be adequate for Labuan, it could potentially be extended to Sabah.

Fadillah emphasised the technical complexity of the project, highlighting the need for a committee to address and finalise various issues.

“The committee’s work is expected to conclude in September,” he said.

Earlier, Fadillah was briefed on various issues related to power supply in Labuan and SESB’s operations at the power station in Patau-Patau.

He said the proposed new power plant project aligns with the announcement made by Prime Minister Anwar Ibrahim during his visit to Labuan in December of last year.

During a meet-and-greet session (in December last year), Anwar had said for a long-term solution to the power supply disruptions in Labuan, the federal government proposes for Petronas to build a new power station.

He said the federal government would instruct Petronas to build a new power plant using a fast-track approach to address power supply disruptions. – Bernama, January 21, 2024.