Tenaga Nasional Berhad (TNB) and Pengurusan Air Selangor Sdn Bhd signed an Electricity Supply Agreement and a Cooling Energy Supply Agreement on July 27, 2026, in Shah Alam, Selangor. The deals will connect the Sungai Rasau Water Treatment Plant in Kuala Langat, billed as Southeast Asia’s largest water treatment facility, to a direct high-voltage power supply while extending district cooling services to another Air Selangor facility in Kuala Lumpur.
Key Facts At A Glance
- Agreements signed July 27, 2026, in Shah Alam, Selangor
- Two documents involved: an Electricity Supply Agreement (ESA) and a Cooling Energy Supply Agreement (CESA)
- Sungai Rasau Water Treatment Plant has a treatment capacity of 1,400 million litres per day
- Plant will be the first in Malaysia to receive a direct 132 kV high-voltage electricity supply
- Upon full completion in 2031, the plant is expected to serve 9.62 million consumers across Selangor, Kuala Lumpur, and Putrajaya
- Cooling services will be delivered by TNB Engineering Corporation Sdn Bhd, a wholly owned TNB subsidiary, under a 20-year concession
- Cooling concession covers an Air Selangor facility on Jalan Pantai Baharu, Kuala Lumpur
- Signing ceremony was witnessed by Deputy Prime Minister and Minister of Energy Transition and Water Transformation Fadillah Yusof and Selangor Menteri Besar Amirudin Shari
Tenaga Nasional Berhad and Pengurusan Air Selangor Sdn Bhd formalized a strategic infrastructure partnership on July 27, 2026, through the signing of an Electricity Supply Agreement and a Cooling Energy Supply Agreement. The ceremony took place in Shah Alam and was witnessed by Deputy Prime Minister and Minister of Energy Transition and Water Transformation Fadillah Yusof alongside Selangor Menteri Besar Amirudin Shari.
Direct High-Voltage Link For Sungai Rasau
Under the ESA, TNB will supply high-voltage electricity directly to the Sungai Rasau Water Treatment Plant in Kuala Langat, which has a treatment capacity of 1,400 million litres per day and is described as the largest water treatment plant in Southeast Asia. The agreement makes Sungai Rasau the first facility in Malaysia to receive a direct 132 kV electricity supply, a configuration intended to improve operational reliability for continuous water treatment. Air Selangor and TNB said that once fully completed in 2031, the plant is expected to deliver treated water to 9.62 million consumers across Selangor, Kuala Lumpur, and Putrajaya.
The Rasau facility has been developed in stages, with earlier construction contracts describing a 700 million-litre-a-day treatment plant paired with an intake structure sized for the full 1,400 million-litre-a-day capacity once subsequent phases are completed. Under the ESA framing announced this week, the plant is positioned as Air Selangor’s first strategic partner to receive dedicated direct power supply, a status meant to support stable and resilient water distribution operations across the Klang Valley.
Twenty-Year Cooling Concession In Kuala Lumpur
The second agreement, the CESA, will see TNB Engineering Corporation Sdn Bhd, a wholly owned TNB subsidiary, provide gas district cooling services to an Air Selangor facility on Jalan Pantai Baharu in Kuala Lumpur under a 20-year concession. The companies described the cooling arrangement as intended to improve energy performance and operational efficiency at the site.
Executives from both organizations framed the agreements as reinforcing national aspirations around energy transition and water security, describing the partnership as expanding integrated utility solutions for critical public infrastructure. Publicly available details on the financial terms of either agreement were not disclosed in company statements at the time of signing.