PUTRAJAYA, February 21, 2019 – Ranhill Holdings Berhad (Ranhill) today entered into a Collaboration Agreement with Thailand-based Treasure Specialty Company Limited (TS Co) to develop a 1,150 megawatt combined cycle gas turbine power plant in Kedah for power export to Southern Thailand.

Prime Minister YAB Tun Dr. Mahathir bin Mohamad witnessed the signing of the Collaboration Agreement by Ranhill Group’s President & Chief Executive Tan Sri Hamdan Mohamad and TS CO’s Mr. Thanong Peeyachaiprapa which took place at the Perdana Leadership Foundation, Putrajaya.

Upon completion, the power plant is expected to dispatch 100% of its generation capacity through a dedicated transmission line to a substation in Southern Thailand. Tan Sri Hamdan said, “Providing cost effective, environmentally clean power to help address power shortage in some parts of Southern Thailand will be a game-changing opportunity for the Ranhill Group as it will not only enable us to expand our domestic power generation business, it will take us beyond our existing water, wastewater and water reclamation activities in the country.”

“We certainly expect the proposed power plant project to boost the Group’s earnings in the long term in addition to diversifying our energy portfolio regionally, while our investment will contribute towards job creation and economic growth of Northern Kedah. Furthermore, the supply of supplementary power to Songkhla, Satun, Pattani, Yala and Narathiwat will certainly act as a catalyst for the further development of these areas.”

According to Ranhill, the project is planned to utilize the existing infrastructure gas CCGT plant that will involve purchasing LNG from PETRONAS before converting it to natural gas at the Melaka regasification plant, from where it will be transported through the PGU network to the power plant before electricity is supplied to Thailand. Evaluation and discussion concerning the said project is on-going as it is still subject to approval from relevant authorities in both Malaysia and Thailand.

“Our partner TS Co, already the advisor for our Thai water projects, is a specialist in project development, fundraising and financial restructuring. Given there are strong prospects to be leveraged in the power sector, it made sound business sense for our two entities to jointly develop and invest in the power plant. This is also very much in line with Ranhill’s aspirations to grow our footprint in Thailand and China, where we have been operating since 2005.”