NST BUSINESS
KUALA LUMPUR: Majuperak Holdings Bhd (MHB) is expanding its energy business through a joint venture (JV) agreement for a special purpose vehicle (SPV).
The SPV will supply natural gas and liquified natural gas (LNG) to power and utilities for commercial, office and industrial areas in Perak.
The project will entail the development of a cogeneration facility, including a district cooling plant, MHB said in a statement late last week.
The agreement was signed between Majuperak Energy Resources Sdn Bhd, a wholly-owned subsidiary of MHB, and Petrolife Aero Sdn Bhd.
The latter is an integrated energy company and a government-licensed importer and distributor of LNG and natural gas.
Nizran Noordin, chief executive officer of MHB, said the deal would enable it to strengthen its presence in the green energy segment.
"The JV will see the establishment of a cogeneration (cogen) plant which combines a conventional gas power plant and a process steam plant to provide both electricity and heat from a single power plant.
"Not only is this much more efficient in terms of energy output, it reduces greenhouse gas emissions and energy loss, providing a more sustainable source of energy," he added.
Petrolife has vast experience in handling multiple upstream projects with multinational oil companies, local companies and government agencies.
Nizran said the JV also enabled MHB to leverage Petrolife's third-party access licence to import and distribute LNG and natural gas supply in Perak.
"This is expected to provide an additional stream of income for the group, supporting business growth over the long-term. Moreover, the cogen plant will provide cost savings for customers, providing further incentive for companies to establish facilities in Perak," he added.
The SPV is targeted to be established within 150 days of the JV agreement, with any extension to be mutually agreed by MHB and Petrolife.