Sembcorp Industries temporarily shuts down Myanmar gas power plant

Singapore's Sembcorp Industries has temporarily suspended operations at its Sembcorp Myingyan Independent Power Plant, a 225MW gas-fired facility located in Mandalay, Myanmar, due to ongoing civil unrest in the region, it said in a stock exchange filing on August 12.

The Electric Power Generation Enterprise, part of Myanmar's ministry of electricity and energy, has been informed and has approved the temporary shutdown. Sembcorp has implemented security measures to safeguard the plant and is keeping relevant stakeholders updated.

The company expressed its intention to resume operations as soon as conditions are deemed safe. Myanmar has been experiencing escalating civil unrest, particularly in the Myingyan township where the plant is situated.

The Sembcorp Myingyan Independent Power Plant, which became fully operational in 2018, was constructed at a cost of $300mn and is one of the largest gas-fired independent power plants in Myanmar. The project was developed under a build-operate-transfer agreement between Sembcorp Myingyan Power Company and Myanmar's ministry of electricity and energy, signed in January 2017. Under this agreement, Sembcorp Myingyan Power Company will operate the plant for 22 years before transferring ownership to the government.