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.
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.