State owned Tenaga Nasional Bhd (TNB) announced that it has entered into three agreements for development of a RM2.47 billion (US$810 million) combined cycle gas-turbine power plant in Seberang Prai, Penang.
The agreements consist of an Engineering, Procurement and Construction (EPC) contract with Samsung Engineering and Construction Malaysia Sdn Bhd, a 20-year Long Term Service Agreement with Siemens AG and an Operation and Maintenance Agreement with TNB REMACO.
The new 1,017 MW gas-fired Prai Power Plant Project is scheduled for completion by the end of 2015 and will include the installation of two Siemens SGT-8000H gas turbines.
According to the joint statement filed with the Malaysia stock exchange, the EPC contract is TNB’s first collaboration with Samsung E&C and includes a structured technology transfer package.
TNB President and CEO, Datuk Wira Ir. Azman Mohd said the Prai Power Plant Project will follow strict emission limits set by the World Bank, with efficiency values of over 60 percent.
TNB also said it plans to invest approximately RM 9.7 billion (US$3 billion) over the next 5 years for the development of new electric power capacity to meet Malaysia’s growing demand.