Korea Electric Power Corp. (KEPCO) signed a power sales contract with Malaysia Electric Power Corporation (TNB) on August 7 for the Pulau Indah gas complex power generation project.
This project is to build and operate a gas complex power generation plant with a total capacity of 1,200MW on the island of Pulau Indah, some 60km southwest of Kuala Lumpur, Malaysia.
The electricity generated by the contract will be sold to Malaysia Electric Power Corporation (TNB) for the next 21 years, and KEPCO will secure a total of 2.9 billion U.S. dollars (about 3.5 trillion won) in stable sales during the business period.
KEPCO signed a joint development agreement with TADMAX in Malaysia in September 2017 and obtained final approval from the local government in January 2020 and signed a contract to acquire 25% of the project's stake in April.
For the Malaysia's Pulau Indah Power Plant, KEPCO will start construction in January 2021 and start commercial operation in January 2024, with domestic construction companies and a number of small and medium-sized enterprises planning to supply power plant construction and related equipment and materials.
POSCO Engineering & Construction Consortium will conduct the design, purchase and construction of power plants in batches, and the economic effect of about 90 billion won is expected due to joint advancement with 40 small and medium-sized enterprises in Korea.
Lee Hyun-chan, director of Overseas Business Development at KEPCO, emphasized, " Pulau Indah Power Plant will use GE's latest high-capacity gas turbines to reduce the cost of electricity by reducing the burden of fuel costs based on high efficiency, and contribute to stable power supply in Malaysia."
He also said, "We plan to strive to reduce global greenhouse gas emissions as an eco-friendly energy company by strengthening business competitiveness in clean thermal power sectors such as natural gas."
KEPCO is actively pursuing a new southern policy in the field of electricity, entering the Malaysian IPP market for the first time. It plans to successfully carry out business in Malaysia with high growth potential and develop follow-up projects such as new and renewable projects to take overseas business to the next level.
Meanwhile, KEPCO is currently carrying out 46 projects in 25 countries, including thermal power, nuclear power, renewable energy, power transmission and new businesses (as of the second quarter of 2020), and generated cumulative sales of 36 trillion won and net profit of 4.0 trillion won through overseas projects.
kslee@koreaittimes.com
