The company has secured in-principle approval to set up the power plant.

Tenaga’s plan to construct the gas-fired facility comes after a previous plan scrapped by Malaysia’s federal and Sabah state governments to build a coal-fired power plant.

According the CEO of the company, the gas-fired plant will replace the coal based one that was being planned and the company is looking to do it either through piped gas of LNG.

Tenaga is now assessing whether piping in the gas from another part of Sabah or importing it in its chilled form as LNG was the best option economically, Reuters said.