KEPCO Launches 1.2GW Gas Combined Cycle Power Project in Malaysia

Signed 21-Year Power Sales Contract with Malaysia Electric Power Corporation
Secured $2.9 Billion in Revenue... Construction Starts January 2021, Operation Begins January 2024

Korea Electric Power Corporation's 1.2GW gas combined cycle power plant project underway in Malaysia. (Photo by Korea Electric Power Corporation)

[Asia Economy Reporter Moon Chaeseok] Korea Electric Power Corporation (KEPCO) is set to officially launch a 1.2GW gas combined cycle power project on Pulau Indah Island in Malaysia. Construction will begin in January next year, with commercial operations starting from January 2024.

On the 11th, KEPCO announced that it signed a power purchase agreement with Tenaga Nasional Berhad (TNB), Malaysia's national electricity company, for the Pulau Indah gas combined cycle power project.

KEPCO will sell all the electricity generated from the Pulau Indah gas combined cycle power plant to TNB for the next 21 years.

During the project period, KEPCO will secure stable sales totaling 2.9 billion USD (approximately 3.5 trillion KRW).

The project involves constructing and operating a gas combined cycle power plant with a total capacity of 1,200 MW on Pulau Indah Island in Selangor state, located 60 km southwest of Kuala Lumpur, the capital of Malaysia.

In September 2017, KEPCO signed a joint development agreement with Malaysia's TADMAX for the Pulau Indah gas combined cycle development project.

In January this year, KEPCO obtained project approval from the local government. In April, it signed a contract to acquire a 25% stake in the project.

KEPCO is collaborating with domestic construction companies and small and medium-sized enterprises (SMEs). A consortium led by POSCO Engineering & Construction is responsible for the plant's design, procurement, and construction. Over 40 domestic SMEs will supply equipment, generating an estimated 90 billion KRW in economic effects through joint market entry.

Lee Hyun-chan, head of KEPCO's Overseas Business Development Office, said, "The Pulau Indah power plant uses GE's latest large-capacity gas turbines, which offer high generation efficiency. This will reduce fuel costs, lower electricity rates, and contribute to stable power supply in Malaysia."

He added, "We plan to successfully carry out this project in Malaysia, which has high growth potential, and develop follow-up projects such as renewable energy and new businesses to further advance our overseas operations."

KEPCO is currently pursuing 46 projects across 25 countries in areas including thermal power, nuclear power, renewable energy, transmission and distribution, and new businesses.

The company has achieved cumulative overseas business sales of 36 trillion KRW and net profits of 4 trillion KRW.

A KEPCO official stated, "When conducting overseas projects, we comprehensively consider profitability and environmental factors. Through this, we aim to contribute to lowering domestic electricity rates, fostering co-growth with private companies, and strengthening industrial competitiveness."

This content was produced with the assistance of AI translation services.