Malaysia’s Genting inks US$1 billion energy deals with two Chinese firms
The conglomerate aims to power up its clean-energy goals with these projects
[KUALA LUMPUR] The energy division of Malaysia’s leisure and hospitality giant Genting has signed two deals worth over US$1 billion with Chinese power and oil-and-gas companies, signalling a major expansion in its energy-generating capacity and its push for clean energy.
One deal involves acquiring a 49 per cent stake in China-based SDIC Jineng (Zhoushan) Gas Power Generation for 100 million yuan (S$18.6 million) through Genting’s indirect subsidiary, Genting MZW.
The other deal is a contract worth over US$1 billion with China-based Wison New Energies for the building of a floating liquefied natural gas (FLNG) facility to be sited in the Indonesian province of West Papua.
Under the deal with SDIC, Genting and SDIC Power will jointly operate the project company once the share acquisition is completed.
SDIC Jineng (Zhoushan) Gas Power Generation owns, operates and develops two units of 745 megawatt (MW) gas-fired power plants in Zhoushan in the Greater Shanghai area in China’s Zhejiang province.
Genting chief operating officer and executive director Tan Kong Han said at a press conference in Kuala Lumpur on Thursday (Jun 20) that the power plants can co-fire liquified natural gas and hydrogen, a cleaner fuel source that will reduce emissions from the process of generating electricity.
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Genting estimates that an additional pro-rata equity investment of 328 million yuan will be needed to reach target commercial operations by 2025.
Under the other contract, Wison is to build the FLNG facility at its shipyards in Nantong and Zhoushan in China. When built, the facility, with a capacity of up to 1.2 million tonnes a year, will be towed to its final destination in Teluk Bintuni in West Papua.
The project is expected to take 27 months. The target sail-away date from the Zhoushan shipyard will be in the second quarter of 2026; the first drop of LNG is expected in the third quarter of 2026.
Genting chairman and chief executive Lim Kok Thay said that the company plans to grow its green-energy business and ride the rising demand for clean energy.
He noted: “The world has changed. The company has to be able to keep pace with the evolving environment and embrace the challenges to be a company of the future.”
He added that Genting would not only stay relevant in Malaysia, but also expand to countries like Indonesia.
With the share acquisition in SDIC Jineng, Genting’s power division’s capacity will rise and surpass 5,000 MW total gross installed capacity; its net attributable operating capacity will be over 2,650 MW.
Genting’s power division has over 3,500 MW total gross installed capacity and more than 1,800 MW net attributable operating capacity.
Genting Energy entered the green-energy business in 2013 with its maiden renewable-energy project – a 91.8 MW wind farm in Gujarat in India.
The group is also involved in running coal-fired power plants in Meizhou Wan in China, and a 600 MW supercritical coal-fired power plant in West Jawa in Indonesia.
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