Malaysia's Genting Bhd and power giant Tenaga Nasional Bhd are planning to build a 1,400 MW coal-fired power plant at a cost of around RM4 billion (US1.1 billion), a report said today.

The Edge business newspaper said, citing sources, that the plant could either be built o­n Langkawi island, in the northern Kedah state or near Kuantan Port in the central Pahang state.

Genting, through its 97.7 percent owned subsidiary Mastika Lagenda, will have a 70 percent stake in Sepang Power Sdn Bhd, the company that holds the licence for the new power plant, the newspaper said.

The Edge said Tenaga would hold the balance of 30 percent.

Diversify earnings

Genting has been trying to diversify its earnings from the gaming sector. It also has interests in property, plantations, paper manufacturing and power. The company has been looking at the power sector aggressively as it provides some stability to its earnings. It has also diversified into the cruise business through its subsidiary Resorts World Bhd.

The Edge said initially, Sepang Power was due to come o­nstream in 2009, after SKS Power's Tanjung Bin plant and YTL Power International Bhd's Jimah Power Holdings.

But the Sepang Power plant now would come o­nstream earlier because of the slow progress at the Jimah plant, it said. - AFP