Benalec unit wins RM1.9 billion contract to move coal for TNB Fuel
Benalec Sdn Bhd, a wholly-owned unit of Benalec Holdings Bhd, secured a two-year RM1.9 billion contract from TNB Fuel Services Sdn Bhd to transport coal, the construction firm told Bursa Malaysia on Tuesday.
Source: Benalec Holdings Berhad · July 30, 2026 at 11:05 PM · AI-assisted report
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KUALA LUMPUR, 31 JULY 2026 —
KUALA LUMPUR, 10 Jun — Benalec Sdn Bhd, a wholly-owned subsidiary of Benalec Holdings Bhd, has secured a two-year RM1.9 billion contract from TNB Fuel Services Sdn Bhd to transport coal, the company announced in a Bursa Malaysia filing on Tuesday.
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The construction firm said it received the letter of acceptance (LoA) from TNB Fuel Services on the same day. The principal contract period spans from 6 June 2025 to 5 June 2027, with an option to extend for an additional year by mutual agreement.
Under the agreement, Benalec will transport 3.5 million metric tonnes of coal annually during the initial contract period. TNB Fuel retains the right to increase this volume by up to 20%. The transportation rates will range from US$4.84 to US$88.75 per metric tonne, with payments made in Malaysian ringgit based on exchange rates set by Bank Negara Malaysia.
Benalec stated that the contract will not affect its share capital or shareholding structure. The company expects the deal to positively contribute to its revenue and net assets for the financial year ending 31 December 2025 and beyond.
No significant risks are anticipated, though Benalec said it will continue to monitor and manage any potential risks throughout the project’s duration. The board of directors, after evaluating all aspects of the contract, deemed it to be in the best interests of the company.
The contract marks a significant development for Benalec, which operates in the marine construction sector. The company’s involvement in coal transportation aligns with Malaysia’s energy sector needs, particularly as Tenaga Nasional Bhd (TNB) continues to rely on coal for a portion of its power generation.
For Malaysia’s energy and logistics sectors, the contract underscores the ongoing demand for coal transportation services, despite global shifts toward renewable energy. The deal also highlights the role of domestic contractors in supporting national energy infrastructure.
Industry analysts suggest that the contract could strengthen Benalec’s position in the marine logistics space, particularly in bulk commodity transport. The company’s ability to secure such a high-value contract may also enhance its credibility with other potential clients in the energy and utilities sectors.
Looking ahead, the contract’s execution will depend on several factors, including global coal price fluctuations, exchange rate stability, and operational efficiency. Benalec’s management has indicated confidence in mitigating risks, but external economic conditions remain a key consideration.
The company has not disclosed further operational timelines beyond the contract’s start and end dates.
Related: Bank Negara Malaysia