UALA LUMPUR (Aug 7): Tenaga Nasional Bhd (TNB) announced today it has signed a power purchase agreement (PPA) with Tadmax Resources Bhd’s special purpose company — Pulau Indah Power Plant Sdn Bhd (PIPP).

In a bourse filing today, TNB said the government had awarded Tadmax Resources the right to develop a new combined cycle gas power plant in Pulau Indah, Selangor.

“In relation to this, TNB wishes to announce that it has today signed a PPA with PIPP (formerly known as Tadmax Indah Power Sdn Bhd), a special purpose company owned by Tadmax Resources (40%), Worldwide Holdings Bhd (35%) and Korea Electric Power Corp (25%).

“The PPA will be for a period of 21 years from the commercial operation date of the first generating block, which is expected on Jan 1, 2024,” it said.

TNB said PPIP will construct, own, operate and maintain a gas-fired combined cycle electricity generating facility with a total nominal capacity of 1,200 megawatts proposed to be located at Pulau Indah.

At noon break, shares in TNB were unchanged at RM11, valuing the group at RM65.75 billion. It saw 894,800 shares traded.

Shares in Tadmax Resources were half a sen or 169% lower at 29 sen, bringing a market value of RM227.15 million. It saw 7.25 million shares exchanging hands.