Deputy prime minister Fadillah Yusof said the proposed power plant, spearheaded by Petronas, would be a collaborative effort with the Sabah Energy Commission (SEC) and Sabah Electricity Sdn Bhd (SESB).

The project is targeted for completion in 2027.

“We will present the proposed project to the Cabinet for approval next week, followed by the next step, wherein the technical team will work on finalising the letter of intent (LoI),” he told reporters after visiting a pipe replacement project site on Pulau Enoe here today.

Fadillah, who is also the energy transition and public utilities minister, said the technical team would include representatives from Petronas, the Energy Commission, SEC, SESB and several state government agencies.

“The aim is to ensure that the finalised project encompasses distribution, generation and demand considerations.

“According to Labuan MP Suhaili Abd Rahman, the island requires at least 150 megawatts of power, but the current plan is to have a capacity of 130 megawatts,” he said.

Fadillah also said that if the power supply proves to be adequate for Labuan, it could potentially be extended to benefit Sabah.

Given the technical nature of the project, he said, a committee of experts must be established to iron out any issues related to the proposed plant.

“The committee’s work is expected to conclude in September,” he said.

Earlier, Fadillah was briefed on various issues related to power supply in Labuan and SESB’s operations at the power station in Patau-Patau.

He said the proposed power plant aligns with the announcement made by Prime Minister Anwar Ibrahim during his visit to Labuan in December.

Anwar had said the federal government proposed that Petronas build a new power station as a long-term solution to the power supply problems in Labuan.