Saturday July 28, 2012
Integrax signs 28-year handling services deal with TNB
PETALING JAYA: Integrax Bhd subsidiary has sealed a 28-year contract with Tenaga Nasional Bhd (TNB) to provide handling services for the importation of coal for the latter's power plant in Telok Rubiah, Perak.
The company told Bursa Malaysia that its unit, Lekir Bulk Terminal Sdn Bhd (LBT), had signed a new jetty terminal usage agreement with TNB unit TNB Janamanjung Sdn Bhd (TNBJ) for the coal imports to be used in the new 1,010 megawatt coal-fired power plant.
Integrax said the agreement would be for an initial period and would expire on March 30, 2040.
Under the agreement, LBT will procure and appoint a reputable contractor to undertake the design, engineering, procurement and construction of about 80-tonne grab bucket unloader, feeder conveyors and its associated equipment and structures.
Integrax said the agreement shall become valid and binding on both LBT and TNBJ upon obtaining approval of the shareholders of Integrax and shall expire on the 25th anniversary of the commercial operation date of the M4 Power Plant to be constructed and operated by TNBJ.
“The M4 Power Plant is scheduled to commence commercial operations on March 31, 2015,” it said.
Integrax said the agreement would continue to be effective and subsist after the initial period so long as the power plant was in operations and provided that TNBJ and LBT reached an agreement on the base operating payments and tonnage payments to be charged after contract year 26.
“The base operating payments and tonnage payments for the extended period shall have reference to the then prevailing tariffs in the market for similar handling services,” said Integrax.
It said the agreement was the second long-term business arrangement between the Integrax group and TNBJ.
Integrax said TNBJ was currently a major customer of the Integrax group, adding that the agreement was in line with the latter's business growth strategy.
It said the profitability of the agreement would depend on the level of activity in the generation of electricity by TNBJ at the new power plant.
TNB is Integrax's second-largest shareholder. The national utility had bought into Integrax as the latter, via Lumut Maritime Terminal Sdn Bhd, controls both Lumut Maritime Terminal and Lekir Bulk Terminal, which are the key gateways for TNB's supply of coal to its power plants.