Construction work has started on the proposed RM12bn ($2.6bn) Jimah East Power (JEP) plant project in Jimah, Port Dickson, about 60km south of Kuala Lumpur in Malaysia.

The 2,000MW ultra-supercritical coal-fired power plant will feature two greenfield power units at the Port Dickson strategic site, which is said to be a crucial to the security of power supply in Peninsula Malaysia.

Power generated from the facility will be sold to Malaysian electric power company Tenaga Nasional Berhad (TNB) under a 25-year power purchase agreement.

TNB owns 70% stake in the project through the acquisition of Edra Global Energy’s stake in Jimah East Power (JEP), a joint venture company formed by Mitsui and 1Malaysia Development Berhad (1MDB) to construct and operate the ultra super critical coal-fired power plant.

In 2015, TNB acquired the power generation assets of Edra Global Energy Berhad from 1MDB.

Mitsui and Chugoku Electric Power each own 15% stake in the project, which is expected to increase TNB’s generation capacity to 25,198.53 MW from the current 22,747.53MW by end 2020.

The first unit of the project is scheduled to commence in June 2019 followed by second unit in December 2019.

In 2015, Hyundai Engineering has awarded two contracts to Jacobs Engineering to provide civil and structural design services for the balance of plant facilities and the cooling water intake and discharge system for Jimah East power project.

A consortium of Toshiba, IHI Corporation, Hyundai Engineering and Hyundai Engineering & Construction was earlier selected for engineering, procurement and construction (EPC) contract for the power project in 2014. The EPC contract was signed with JEP.

Image: Officials during the Jimah East Power (JEP) plant project site in Malaysia. Photo: courtesy of Tenaga Nasional Berhad (TNB).