A joint venture between Japanese shipping company, Kawasaki Kisen Kaisha (K Line), and Malaysia-based shipping company, Halim Mazmin Group (HMG) has secured a long-term contract to transport thermal coal for Tenaga Nasional Berhad (TNB), Malaysia’s largest power utility.
Under the agreement, the joint venture will transport 1.5 million tpy of thermal coal for ten years using a dedicated panamax vessel. Coal will be sourced from Indonesia, Australia or South Africa.
TNB has total generating capacity of 11 GW, making It one of the largest generators in southeast Asia. It is currently development Project 3A – a 1 GW coal-fired power plant that will use Hitachi’s ultra-supercritical boiler technology and be located on TNB’s existing Manjung power complex.
According to BMI Research, Malaysian electricity generation is expected to expand 6.1% this year and 6.4% next year on the back of major thermal projects coming online.
Edited by Jonathan Rowland.