LABUAN, 27 January 2026 – Rancha Power Sdn Bhd (RPSB) today marked the groundbreaking of Labuan’s new 120-megawatt (MW) gas-fired power plant, an energy infrastructure project aimed at strengthening the island’s electricity capacity and ensuring a stable and reliable power supply.
RPSB is a three-party joint venture among PG Energia Sdn Bhd, a subsidiary of PETRONAS Gas Berhad (PGB), SEC Power Sdn Bhd, a subsidiary of Sabah Energy Corporation Sdn Bhd, and Sustainable Power Sdn Bhd, a subsidiary of Sabah Electricity Sdn Bhd. Construction is scheduled to commence in February 2026, with commercial operations targeted for 1 January 2028.
The new facility will be built within the Rancha-Rancha Industrial Estate, approximately two kilometres from the existing Stesen Janakuasa Patau-Patau, which currently serves as Labuan’s primary power source and is scheduled to cease operations by 31 December 2027. The Rancha power plant will ensure continuity of electricity supply and support Labuan’s future energy needs across residential, commercial, and industrial sectors.
The ceremony was officiated by the Deputy Prime Minister, Datuk Amar Fadillah Yusof, who is also the Minister of Energy Transition and Water Transformation.
He emphasised the importance of the new development, noting, “This is vital to safeguarding Labuan’s electricity supply. Designed for flexible generation with an adequate reserve margin, the plant will deliver a reliable supply to meet residential, commercial, and industrial demand across the island.”
RPSB Chairman, Abdul Aziz Othman said, “The establishment of the power plant represents a transformative step toward strengthening energy resilience and driving regional development in Labuan. Beyond advancing progress, it acts as a catalyst for economic growth in the surrounding industrial zone, strengthens state–federal collaboration, and accelerates the development of local industry capabilities.”
This milestone reinforces RPSB’s role in advancing Labuan’s energy infrastructure and supporting Malaysia’s energy transition agenda, paving the way for a more reliable and future-ready power system.
