China’s Shanghai Electric has secured a contract to supply gas turbines for the third unit of a 500 megawatt (MW) Combined Cycle Gas Turbine (CCGT) project being built in the Samalaju Industrial Park, Sarawak, Malaysia, it is reported. This marks the company’s first overseas order for a heavy-duty gas turbine.
The contract was signed under an Engineering, Procurement and Construction (EPC) turnkey structure, and is reported to include a 25-year Long-Term Service Agreement (LTSA). Shanghai Electric is said to supply the gas turbine, steam turbine, generator, Heat Recovery Steam Generator (HRSG), and air-cooling system as a single integrated package.
The project has a capacity of 500 MW. Including this contract, Shanghai Electric has cumulatively supplied 103 gas turbines, with total installed capacity in commercial operation exceeding 21,000 MW, according to reports. New deliveries are reported to be available starting in 2028.
Sarawak, Malaysia, has been expanding CCGT power facilities to meet rising electricity demand from industrial parks, and this contract is reported to mark a milestone for a Chinese power equipment manufacturer establishing its first overseas track record in heavy-duty gas turbines.
This order is drawing industry attention as a case in which a Chinese manufacturer has secured its first overseas track record in the heavy-duty gas turbine market, which has long been dominated by a handful of global manufacturers such as Siemens Energy, GE Vernova, and Mitsubishi Power. Shanghai Electric’s combined award of EPC turnkey work and a 25-year long-term service agreement can be interpreted as a strategy to expand into the operation and maintenance (O&M) market going forward. Southeast Asia has continued to see CCGT orders driven by rising power demand from industrial park and data center expansion, and amid mounting supply backlogs at established global turbine makers, Chinese manufacturers are seen as a potential alternative supply source. This suggests that price competition in Southeast Asia’s CCGT order market could intensify going forward, prompting established global manufacturers to seek their own response strategies. Sarawak is seen as continuing efforts to strengthen its position as a clean energy hub while building a stable power supply network for its industrial parks.
Whether the new deliveries scheduled for 2028 proceed as planned is a primary point to watch. Whether Shanghai Electric leverages this track record to pursue additional gas turbine orders elsewhere in Southeast Asia is also worth monitoring. In addition, how the 25-year long-term service agreement is actually managed, and what response strategies established global turbine manufacturers adopt, bear watching. Whether further electricity demand growth in the Samalaju Industrial Park leads to follow-on power project orders is also of interest.