Malaysia's Genting acquires stake in Chinese gas power project for $14mn
Malaysia’s Genting has entered into a share sale and purchase agreement with Jineng International Energy to acquire its 49% equity shares in SDIC Jineng (ZhouShan) Gas Power Generation Co. for $14mn, the company announced on June 20.
SDIC Jineng is the project company established to own and develop a 2 x 745MW gas-fired power plant located in ZhouShan, Greater Shanghai Area, in Zhejiang Province, China. SDIC Power Holdings Co. holds the 51% majority share in the project.
The project will utilise H class gas turbines manufactured by GE Vernova and is expected to begin commercial operation in Q4 2025. The power generated will be supplied to consumers in Zhejiang province. Construction started in Q4 2023 and has achieved 10% overall progress. The project is equipped with low nitrogen oxide (NOx) burners technology capable of co-firing natural gas with 10% to 50% hydrogen.
Genting Sanyen, a unit of Genting, has also signed a heads of agreement with SDIC Power for joint cooperation in the project company following the successful completion of the proposed acquisition.
The company estimates that a further pro-rata equity investment of approximately $46mn will be required until the target commercial operation in 2025. The purchase price and equity investment, totalling about $60mn, will be fully funded by internally generated funds, according to Genting.
As of the end of 2023, Genting's power division has over 3.5 GW of total gross installed capacity and over 1.8 GW of net attributable operating capacity. With this proposed acquisition, these figures will increase to over 5 GW of total gross installed capacity and over 2.65 GW of net attributable operating capacity.
Genting and SDIC Power are already joint venture partners in SDIC Genting Meizhou Wan Electric Power Company, which owns two phases of coal-fired power plants in Meizhou Wan, Fujian Province, China; a 2 x 1 GW coal-fired power plant; a 660 MW supercritical coal-fired power plant in Banten Province, West Java, Indonesia; and a 100 MW Dongwu Cha Solar Plant, an aquaculture-complementary solar power plant located in Fujian Province, China, scheduled to begin operation in early 2025.