5 - Lahad Datu Power Plant (300MW)

EPP 5 : LAHAD DATU POWER PLANT (300MW)

The fuel for the power plant will be LNG

The power plant and LNG re-gasification plant are to be built in POIC Lahad Datu Phase 3

 
   

Key outcomes of the EPP / KPIs
• Creation of 390 jobs for Sabahan from top management to supporting staff during operations and 2737 jobs during construction. Hence, transfer of technology
and knowledge will take place to local manpower and contractors
• Additional 300 MW of cleaner and stable energy supply into SESB to preserve Sabah eco treasure
• Reduce the yearly lost from industrial losses RM4.59billion/per year due to power interruption

Key Challenges
• POIC policy not to sell sea front land and project owner plan to purchase the land for jetty and port to lower the project cost and ensure the security of long term
investment
• POIC policy for them to build and operate the jetty vs project owner plan to self build and self operate the jetty to reduce cost
• Lengthy negotiation period on Power Purchase Agreement (PPA)
• Shortage of capable manpower and local contractors

What needs to be done?
• Project consortium needs to Resolve land purchase/lease matters by Dec 2011
• Resolve jetty building and ownership matters between
project consortium and POIC / Sabah Authorities by Dec
2011
• Project consortium needs to start the land works latest
by Q1 2012
• MLNG needs to secure the LNG import supplies from
international market by 2014

Mitigation Plan
• Work on the agreed price for both parties whether on selling/purchasing or leasing the land
• Speed up state government decision on the ownership of the jetty
• Intervention from MPRC, state government into the negotiation of PPA to speed up the decision
• Proper education planning to prepare and develop the skilled and semi skilled manpower

 

 Edited on Saturday November 30, 2013 03:19:45 PM  by Michael

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