Propel Global, Sabah Energy, Reservoir Link to explore modular gas power plant in Sabah

KUALA LUMPUR (Feb 4): Propel Global Bhd has 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.

The MoU, signed on Jan 31, sets out a collaboration to assess a cost-efficient, low-emission and rapidly deployable energy solution aimed at supporting industrial growth and enhancing grid stability in the state.

Under the agreement, Propel Global and Reservoir Link will jointly undertake feasibility studies, social and environmental impact assessments, power system and transmission connectivity studies, as well as financial modelling and analysis.

Meanwhile, SEC will provide support on land-related matters. The parties will also establish a Joint Working Group within 30 days of the MoU to coordinate and oversee activities under the collaboration.

The project will be implemented under a zero-capex structure, with full capital expenditure to be borne by Reservoir Link.

Detailed commercial and ownership terms will be finalised in a subsequent joint venture agreement, it said in a joint statement on Tuesday.

The MoU will remain in force for two years unless it is superseded by the execution of the joint venture agreement or terminated earlier by mutual consent or with one month’s written notice.

The parties have also agreed to collaborate on an exclusive basis in Sabah during the MoU period and for two years thereafter, with all information exchanged to be treated as confidential.

As part of the collaboration, the parties will support fuel transformation initiatives at project sites by developing and operating the project with integrated LNG regasification, gas distribution and modular power generation.

Propel Global executive director and group chief executive officer Angeline Lee said the partnership underscores the group’s commitment to delivering 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.”

Reservoir Link executive deputy chairman Thien Chiet Chai added that by aligning its core expertise and leveraging the strengths of its partners, the group mains to deliver a comprehensive solution that strengthens Sabah’s energy resilience and creates long-term value for industry and 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.

“This collaboration enables Reservoir Link to leverage our engineering, EPC, and O&M competencies on a wider commercial scale, diversify our 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,” he said.