PROPEL GLOBAL SIGNS SABAH GAS POWER MOU WITH SABAH ENERGY, RESERVOIR LINK

KUALA LUMPUR, Feb 3 (Bernama) -- Propel Global Bhd has signed a memorandum of understanding (MoU)  with Sabah Energy Corporation Sdn Bhd and Reservoir Link Energy Bhd to explore the development of a modular gas power plant in Sabah.

In a joint statement, the companies said the collaboration aims to deliver a cost-efficient, low-emission and rapidly deployable energy solution to support industrial growth and grid stability in the state.

Under the MoU, Propel Global and Reservoir Link will jointly undertake feasibility studies, environmental and social impact assessments, power system and transmission connectivity studies, as well as financial modelling and analysis, with land matters supported by Sabah Energy.

The parties also agreed to establish a joint working group within 30 days of the MoU to coordinate, evaluate and oversee activities required under the agreement.

The project will be implemented under a zero-capital-expenditure structure, fully borne by Reservoir Link, with detailed commercial and ownership terms to be set out in a subsequent joint venture agreement, they said.

Propel Global said the partnership will remain in force for two years from the date of the MoU, unless earlier superseded by the execution of the joint venture agreement or terminated by mutual consent, or by either party with one month’s prior written notice.

The parties have also agreed to collaborate exclusively in Sabah during the MoU term and for two years thereafter, and to treat all information exchanged as confidential.

As part of the collaboration, the companies will support fuel transition initiatives at project sites by developing, implementing, and operating projects that integrate liquefied natural gas 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 cleaner and more reliable energy solutions for Sabah.

“By integrating LNG regasification with modular generation technology, we aim to support Sabah’s energy transition through cost savings and lower carbon emissions, while contributing to the state’s long-term industrial and economic development,” she said.

She added that the group remains focused on responsible delivery, with strong governance and robust environmental and social safeguards to ensure sustainable benefits for local communities and industry.

-- BERNAMA