KUCHING: Sarawak Energy Bhd (SEB) is collaborating with General Electric (GE) and Sinohydro on the construction of a 400megawatt (MW) Combined Cycle Gas Turbine (CCGT) Block at Tanjung Kidurong in Bintulu.
Works of the RM1billion project are scheduled to commence at the end of November this year, where it should reach completion by the middle of 2019.
The development is set to replace the existing open cycle turbines at the Tanjung Kidurong power station with the more advanced and highly efficient CCGTs.
Under the agreement, GE – a world leader in power generation solutions for utilities – takes the lead as the engineering procurement and construction (EPC) contractor with consortium partner Sinohydro, which is China’s key power and infrastructure EPC contractor.
This contract is the main component of the project’s total six packages – the other five are open to local contractors as part of SEB’s ongoing commitment to maximise local participation and content across all its contracts.
SEB group chief executive officer Datuk Torstein Dale Sjøtveit, SEB chief operating officer Lu Yew Hung and SEB Power executive vice-president James Ung were present for the signing yesterday.
The contract was inked with a consortium of four companies – GE Power Solutions (Malaysia) Sdn Bhd, GE (Switzerland) GmbH, Sinohydro Corporation (M) Sdn Bhd and Sinohydro Corporation Ltd.
The ceremony had also held the signing of an agreement on key terms for the proposed long-term service agreement (LTSA) to provide operation and maintenance (O&M) services and support for the power plant over an eight-year term based on the power plant’s requirements.
The LTSA would also include training of O&M personnel, supply of major spares as well as the setup of a Computerised Maintenance Management System (CMMS).
Subject to continuing discussions and SEB’s approval processes, the final award of the LTSA is expected by early next year.
“The new and advanced technology will generate electricity at a higher efficiency and output, enabling us to meet growing demands of Sarawak’s organic load. We will ensure that the plant will be effectively and safely operated through the LTSA, which is crucial for the long-term operational maintenance of the plant,” said Sjøtveit.
The LTSA would ensure efficient performance of the power plant as well as the continual support from the original equipment manufacturing (OEM) contractor, in that it would also provide access to the latest improvements on and upgrades in GCGTs from the OEMs and ensure knowledge transfer from the OEMs to the plant’s O&M personnel.
SEB is developing gas-powered generation projects over the next five to 10 years, with a two-phase plan to raise output and strengthen its gas generation mix by an additional 1,600MW.
Following the 400 MW Tanjung Kidurong power station, Phase II will have the development of a new 1,200MW gas-powered plant at Samalaju Industrial Park.
Currently, about 15 per cent of the state’s power generation is from its Bintulu and Miri gas-powered plants; and 10 per cent from coal resources.
About 75 per cent of Sarawak’s current power is derived from the hydropower plants at Murum, Bakun and Batang Ai.
In the selection of contractors, a comprehensive procurement process had been undertaken in accordance with SEB’s procurement procedures and in alignment with recognised industry best practices to identify the tender offer would represent the best value, whilst maximising local content and knowledge transfer to local companies.
“In Sarawak Energy, we treat our contractors not just as vendors, but also as business partners. We require our partners to execute projects in a professional manner and seek our assistance at an early stage should they encounter any challenge – to ensure that the project is implemented smoothly and successfully,” added