Utility giant Tenaga Nasional Bhd has signed a new power purchase agreement (PPA) with Powertek Bhd, a unit of 1MDB, in relation to an extension of the deadline by three years and 10 months.

The new PPA governs the rights and obligations of both parties throughout the term of the extension and on the sale and purchase of all the capacity and the electrical energy generated by Powertek from its 434MW open-cycle power plant located at Telok Gong, Malacca, Tenaga said in a filing to Bursa Malaysia.

The original PPA with Powertek expired on Jan 13, 2016. The extension would have a neutral impact on its earnings, it said.

- Bernama