Tenaga Nasional Bhd (TNB) has signed a power purchase agreement (PPA) with Pengerang Power Sdn Bhd to buy 600 megawatt (MW) generating capacity and electrical energy for a period of 21 years.

Pengerang Power is a wholly-owned unit of Petronas.

In a filing to Bursa Malaysia Friday, TNB said, Pengerang Power would initially sell 400 MW of generating capacity and electrical energy from June 1 next year followed by an additional 200 MW from Jan 1, 2019.