KUALA LUMPUR (Nov 6): Kinergy Advancement Bhd (KAB) has secured a RM33.3 million contract from Pengerang LNG (TWO) Sdn Bhd, a subsidiary of Petronas Gas Bhd, to supply utilities expansion and infrastructure enhancement of 137,000m³ of liquefied natural gas carriers into a floating storage unit (FSU) transformation.

KAB said in a filing on Monday (Nov 6) the letter of award (LOA) encompasses engineering, procurement, construction and commissioning (EPCC) work of utility supply for the FSU at the Regasification Terminal Pengerang and KAB is expected to complete the work by the end of 2024.

“As part of KAB’s environmental sustainability efforts, the FSU will be engineered to facilitate shore power connections, with the aim of reducing emissions and enhancing operational efficiency.

“The LOA for this project entrusts KAB with the responsibility of providing utility supply for the new facilities, overseeing, and managing all project aspects from pre-construction to commissioning. The objective is to ensure smooth operation of the expanded infrastructure and compliance with regulatory requirements supporting the FSU,” said the group.

This project is expected to enhance the group's revenue and solidify KAB's position in sustainable energy solutions, aligning with KAB's vision for a sustainable future.

The contract marks the second contract that has been awarded by a Petronas-owned entity pursuant to the EPCC contract secured earlier this year, to build and supply 52 megawatts electricity, which is to be known as Malaysia’s first single largest gas engine power plant.

“This award reflects our dedication to reliability and excellence in demonstrating our commitment to our client. It also solidifies our credentials and our journey from an initial M&E (mechanical and electrical) solutions provider to a holistic one-stop energy and engineering solutions provider,” said KAB executive deputy chairman cum group managing director Datuk Lai Keng Onn.

At noon break, KAB was unchanged at 33 sen, translating into a market capitalisation of RM641.9 million.