---
endpoint: analytics
pattern: Power
status: done
latency_ms: 174983
conversation_id: c76912ad-bc2d-42f0-bec8-72c2a9504e92
citations: 10
created: 2026-05-31 21:17:29Z
---

# Who are the key customers and suppliers of Tenaga?

# Tenaga Nasional Berhad (TNB / 5347-MY) — Key Customers and Suppliers

Tenaga Nasional Berhad ("Tenaga" / TNB) is Malaysia's vertically integrated national utility — it generates, transmits, and distributes electricity in Peninsular Malaysia under the Incentive‑Based Regulation (IBR) framework. Below is a synthesis from CLSA internal research and TNB's own filings (annual report and earnings calls).

---

## 1. Key Customers (Demand-side)

TNB sells regulated electricity to four customer segments under the price‑cap retail regime. Recent commentary highlights a sharp mix shift toward **commercial / data‑centre customers**, partly offsetting weakness in industrial demand.

### a) Customer segments (1Q25 mix)

| Segment | YoY trend (1Q25) | Comment |
|---|---|---|
| Commercial (incl. data centres) | **+5.1% YoY** — key growth driver [7] | Pulled by data‑centre power demand [6][7] |
| Industrial (manufacturing, esp. electronics) | **–5.5% YoY** [7] | Weakness traced to electronics manufacturing slowdown [5] |
| Residential | Flat / modest growth | Protected by AFA tariff mechanism (8.5m consumers) |
| Others (street lighting / mining etc.) | Small | Lower priority |

Management was specifically asked at the Q1 results call: *"there is a negative number for industrial as well as commercial segment… can you share a bit more color on your customers other than the data center players?"* — confirming that data centres are the single most important new customer cohort, with the rest of the commercial/industrial book contracting [5].

### b) Data‑centre customers — the dominant new demand driver

TNB has emerged as the **sole grid power supplier** to the Malaysian data‑centre buildout, with CLSA explicitly flagging that "we prefer contractors Gamuda and IJM Corp on the back of this buildout, as well as Tenaga who will be supplying the power" [8].

Key data‑centre customer metrics:

- **35 DC projects already connected**, drawing maximum demand of ~850 MW at year-end 2025, against a final **contracted demand of ~4.5 GW** still to come online over the next 1–3 years [4].
- By 1Q FY26, **utilised DC load reached ~1,054 MW vs declared demand of 1,840 MW** (~58% load factor) — implying ongoing ramp under signed Power Supply Agreements (PSAs) [10].
- End‑customer demand is "especially strong from **Chinese companies**" using Malaysian DCs for regional operations; the largest live colo operator in Johor/Malaysia (anonymised — entered Malaysia via Cyberjaya in 2018 and now operates in Bukit Jalil, Sedenak and Ulu Tiram) plans ~800 MW of DC capacity by 2028 vs ~300 MW in service today [9].
- Hyperscaler tenants of these colos include **US tech companies** (e.g., the recent RM1.2bn Sunway Construction award for two DCs for a US tech client, and Gamuda's RM1.0bn enabling‑works award in Negeri Sembilan) [8].

Under RP4 (2025–27), management noted that data‑centre demand will lift the base on which TNB earns its guaranteed 7.3% regulated return, providing structural upside beyond RP3 [6][7].

---

## 2. Key Suppliers (Cost-side)

TNB's cost base is dominated by fuel and capacity payments to Independent Power Producers (IPPs), plus equipment vendors for grid upgrades.

### a) Fuel suppliers (largest cost line)

Fuel is procured for both TNB's own plants and via energy payments to IPPs. The 9MFY25 fuel‑cost split shows **coal and gas as the two dominant inputs** [3]:

| Fuel | TNB-owned plants | IPP-supplied | Total share of fuel cost (9M25) |
|---|---|---|---|
| **Coal** | 33.9% | 22.8% | **56.7%** |
| **Gas** | 18.6% | 22.6% | **41.2%** |
| Distillate | 0.3% | 0.3% | 0.6% |
| Oil | 0.2% | 0.0% | 0.2% |

- **Gas supply**: Natural gas is the designated transition fuel. **TNB Fuel Services Sdn. Bhd. (TNBF)** is the group's gas value‑chain arm and is "strategically venturing into the gas value chain as a LNG aggregator and supplier," leveraging TNB's participation in the **Lumut Regasification Terminal (RGT)** and the Third‑Party Access (TPA) framework [2]. (Upstream sourcing in Malaysia is dominated by Petronas group entities including Petronas Gas, which supplies pipeline gas, and the gas reference market price is the key driver of TNB's gas cost.)
- **Coal supply**: Imported coal, with delivered CIF price tracked at ~US$100.5/MT in 9MFY25 vs US$112.5/MT in 9MFY24 (–10.7% YoY) [3].

### b) Independent Power Producers (IPPs) — capacity suppliers

A large share of TNB's generation capacity is provided by IPPs under long‑dated Power Purchase Agreements (PPAs). TNB's own coal fleet (with PPA expiry years) is itemised in the annual report — these are also the company's largest long‑duration capacity suppliers [1]:

| Coal plant entity | Capacity (MW) | PPA Expiry |
|---|---|---|
| KEV (Kapar Energy Ventures) | 1,486 | 2029 |
| TNBJ M1, M2, M3 (Janamanjung) | 2,070 | 2030 |
| TNBJ M4 | 1,010 | 2040 |
| TNBJ M5 | 1,000 | 2042 |
| JEP (Jimah East Power) | 2,000 | 2044 |

TNB has committed to **no greenfield coal investment since 2021** [1] and is pivoting to gas — including a new **1,400 MW combined‑cycle gas‑fired plant at Paka, Terengganu** (COD Dec 2029) and a **2,100 MW CCGT at Kapar** (by 2031), both hydrogen‑ready [2]. Major solar IPPs also feed the grid (Solar IPP ~1.9% of units generated in 9MFY25) [3].

### c) Grid / transmission equipment suppliers

Under Regulatory Period 4 (RP4, 2025–27), TNB has RM26.6bn of approved base regulated capex plus RM16.3bn of contingent capex (RM42.8bn total) [7]. CLSA's channel checks indicate that **cable companies will be the principal beneficiaries** as TNB awards more contracts in upcoming quarters to upgrade grid and transmission lines to absorb data‑centre load [6][7]. Construction contractors **Gamuda (GAM MK) and IJM Corp (IJM MK)** are the preferred CLSA picks alongside TNB itself for this buildout [8], although the data‑centre operators themselves continue to use **experienced foreign contractors** for DC construction because "Malaysians are fast catching up" but local capability is still maturing [8].

---

## 3. Summary Map

```
            SUPPLIERS                          CUSTOMERS
            ─────────                          ─────────
 Gas (Petronas Gas, LNG via TNBF/RGT) ──┐    ┌── Data centres (~4.5 GW contracted; 35 connected; ~1.05 GW utilised 1Q26)
 Coal (imported, CIF ~US$100/MT) ──────┤    ├── Commercial (+5.1% YoY 1Q25)
 IPPs:                                 │    ├── Industrial (–5.5% YoY 1Q25; electronics weak)
   KEV, TNBJ M1–M5, JEP (coal)         ├──> TNB ──> ├── Residential (AFA-protected, 8.5m users)
   Various gas / solar IPPs            │    └── Others
 Grid/cable & EPC vendors              │
   (RP4 capex RM42.8bn)                │
 Contractors: Gamuda, IJM, SunCon ─────┘
```

---

**Sources**
[1] Tenaga Nasional Bhd. — Integrated Annual Report 2025 (Coal PPA list incl. KEV, TNBJ, JEP)
[2] Tenaga Nasional Bhd. — Integrated Annual Report 2025 (Gas as transition fuel; TNB Fuel Services as LNG aggregator)
[3] Tenaga Nasional Berhad — Q3 FY25 Earnings Slides (Fuel cost & units generated split TNB vs IPP)
[4] Tenaga Nasional Bhd. — Integrated Annual Report 2025 (DC segment: 35 projects, ~850 MW, ~4.5 GW contracted)
[5] Tenaga Nasional Berhad — Q1 2025 Earnings Call (CLSA analyst question on non-DC customer colour)
[6] CLSA — "Tenaga – O-PF (Fresh start)" 27 May 2025 (Commercial growth, DC demand, cable contracts)
[7] CLSA — "Tenaga – O-PF (Fresh start)" 27 May 2025 (1Q25 segment growth: commercial +5.1%, industrial –5.5%; RP4 capex)
[8] CLSA — "Malaysia Strategy (Data centre channel check)" 6 Jun 2025 (Foreign contractors, Gamuda/SunCon awards)
[9] CLSA — "Malaysia Strategy (Data centre channel check)" 6 Jun 2025 (Largest colo operator in Johor; 800 MW by 2028; Chinese customer demand)
[10] Tenaga Nasional Berhad — Q1 2026 Earnings Call (DC PSA utilisation: 710→1,054 MW vs 1,464–1,840 MW declared demand)

## Citations

- [1] **Tenaga Nasional Bhd. (5347-MY) - Annual Report for period end 31-Dec-2025 (English) - PDF - 4 / 5** · external
- [2] **Tenaga Nasional Bhd. (5347-MY) - Annual Report for period end 31-Dec-2025 (English) - PDF - 4 / 5** · external
- [3] **Tenaga Nasional Berhad Q3 2025 Earnings Call Dec 01 2025.pdf** · external
- [4] **Tenaga Nasional Bhd. (5347-MY) - Annual Report for period end 31-Dec-2025 (English) - PDF - 5 / 5** · external
- [5] **Tenaga Nasional Berhad, Q1 2025** · external
- [6] **607960696LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607960696LinqAlpha.PDF>
- [7] **607960696LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607960696LinqAlpha.PDF>
- [8] **607961433LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/06/607961433LinqAlpha.PDF>
- [9] **607961433LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/06/607961433LinqAlpha.PDF>
- [10] **Tenaga Nasional Berhad, Q1 2026** · external

