Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on February 21, 2019

KUALA LUMPUR: Ranhill Holdings Bhd, whose share price climbed to a record high of RM1.45 yesterday, plans to partner with Thai-based Treasure Specialty Co Ltd (TS Co) to export electricity from Kedah to Thailand.

The utility group announced to Bursa Malaysia yesterday that both companies are working out a proposal for a 1,150 megawatt (mw) combined cycle gas turbine (CCGT) power plant in Kedah.

TS Co is currently the adviser to Ranhill’s water businesses in Thailand and will be its joint developer and co-investor in Ranhill’s new water concessions in Thailand.

Ranhill said its board has approved the collaboration agreement.

The agreement outlines both parties’ intentions to explore to develop the proposal to build, operate and own the power plant project. All the electricity produced from the power plant will be exported to Thailand through a dedicated transmission line with interconnection to substations in Thailand.

“For the purpose of the project, TS Co will be the co-promoter with Ranhill, and will take the lead in the development aspect on the Thailand side.

“Ranhill and TS Co agree to mutually discuss and collaborate for a period of six months from the date of the collaboration agreement or such period as may be mutually extended by the parties.”

Under the agreement, the two companies have agreed that that TS Co and its group of investors may subscribe up to 30% of the interest in the project, whereas Ranhill may subscribe to no less than 70% interest in the project.

“Both parties will be responsible to source for its own equity injection and may source for additional investors,” it said.

Ranhill said the parties believe the proposed project, utilising existing infrastructure for gas-fired CCGT, will be able to provide a cost competitive solution to the provision of clean electricity power to the provinces of southern Thailand.

The project is still subject to approval from relevant authorities in both Malaysia and Thailand.

The utility stock finished six sen, or 4.32% higher yesterday, at RM1.45 — its highest-ever closing, for a market capitalisation of RM1.29 billion.

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