Shanghai Electric announced it has secured an Engineering, Procurement and Construction (EPC) turnkey contract for Unit 3 of a combined-cycle gas turbine (CCGT) power plant in the Samalaju region of Sarawak, Malaysia. The contract marks the first overseas application of Shanghai Electric’s 500 MW-class heavy-duty gas turbine, according to reports.
The project involves construction of a 500 MW-class generation unit at the Samalaju industrial park, with Shanghai Electric reportedly supplying the gas turbine, steam turbine, generator, heat recovery steam generator (HRSG), and air-cooled condensing equipment entirely from its own production. The contract also reportedly includes a 25-year long-term service agreement (LTSA).
Shanghai Electric stated that, including this contract, it has cumulatively supplied 103 gas turbines with a total installed capacity of more than 21,000 MW overseas. The specific value of this contract has not been disclosed. The deployment is notable as the first overseas application of a heavy-duty gas turbine based on the company’s 300 MW-class platform.
Southeast Asia is reported to be continuously expanding gas-based combined-cycle power generation capacity to meet rising electricity demand, and this project is reported to be part of that regional response.
The heavy-duty gas turbine market has reportedly long been led by Western and Japanese manufacturers such as GE Vernova, Siemens Energy, and Mitsubishi Power, making this contract notable as the first overseas market entry for a Chinese-made heavy-duty gas turbine. If Chinese power equipment manufacturers continue pursuing overseas contracts on the strength of large gas turbine technology developed in their domestic market, this could shift the competitive landscape of the existing gas turbine market, according to industry observers. In particular, expanded participation by price-competitive Chinese manufacturers in emerging power markets such as Southeast Asia and the Middle East could affect the contract-winning strategies of incumbent leaders. The inclusion of a 25-year long-term service agreement is also seen as evidence that Chinese manufacturers are building capabilities spanning the full lifecycle of plant operation, beyond simple equipment supply.
The completion timeline for Unit 3 and its operational performance after entering commercial service are expected to serve as key indicators of whether Chinese heavy-duty gas turbines can expand further in overseas markets. Also worth watching are whether further power generation capacity expansions follow at the Samalaju industrial park, and whether similar contracts for Chinese-made gas turbines emerge in other Southeast Asian countries.