ARL Power was first incorporated under the name ARL Tenaga Sdn Bhd in 1994 and is part of ARL Global group of companies. On 14 June 1994, the Malaysian Government awarded ARL Tenaga the Electricity Generating License to build, own and operate a power generation plant to supply electricity to Sabah Electricity Sdn Bhd (SESB).

The company owns and operates a 50 MW medium fuel oil power plant in Melawa, Kota Kinabalu, Sabah. The Power Plant’s total generating capacity and energy production are sold to Sabah Electrical Sdn Bhd (SESB) base on a 21 year Power Purchase Agreement (PPA), which allows for the exclusive sale of generating capacity, on a fixed payment and a variable payment for electrical energy for a period of 21 years commencing 31 October 1995.

A consortium, which comprised Hyundai Heavy Industries Co. Ltd and Hyundai Engineering Corporation of Korea, undertook the Power Plant’s engineering design, procurement and construction. The project was completed at a total cost of approximately RM190 million. It comprises 4 unites 12.5 MW gross medium speed diesel engines. The engines, of NSD Switzerland design, are able to run either on medium fuel oil, distillate fuel or a blend of diesel and palm olein.

Our Power Plant has been in operation since October 1995 and is located adjacent to an existing SESB diesel fired Power Plant. We deliver electrical energy to SESB through interconnection facilities in the existing SESB plant’s switchyard. The project also includes facilities to process, store and manage fuel oil and wastes and all other auxiliaries necessary for the operation and efficient running of the Power Plant.

We enjoy a unique relationship with PETRONAS as ARL Power is one of their biggest customers for medium fuel oil for power generation, whereas our other Group Company Petrojadi is providing support services to PETRONAS in the Oil & Gas sector.