KUALA LUMPUR, June 20 — Genting Bhd is eyeing to generate about US$8.5 billion (RM40 billion) in revenue over the next 25 years from the gas-fired power plant in ZhouShan, Greater Shanghai Area, in the Zhejiang Province, China, which it has proposed to acquire.
In a filing with Bursa Malaysia today, Genting, via its indirect unit Genting MZW Pte Ltd, proposed to acquire a 49 per cent equity interest in SDIC Jineng (ZhouShan) Gas Power Generation Co Ltd, which is developing a 2x745-megawatt gas-fired power plant in Zhoushan, for 100 million yuan.
Commenting further on the proposed acquisition, Genting president and chief operating officer Datuk Seri Tan Kong Han said the group aims to generate US$343 million annually starting in 2026, as the power plant is estimated to be completed by end-2025.
He said the company is looking forward to investing more in the green energy sector even though the segment currently does not contribute significantly to its revenue.
“If you look at our last annual report, the leisure and hospitality sectors contributed about US$4.9 billion in revenue, whereas the power and oil and gas divisions currently, or at least at the end of last year, contributed only US$365.7 million.
“So, it is a small fraction of the business contribution, but just looking at the current gas prices, that could bring us around US$1.3 billion in revenue, and it suddenly becomes a big number.
“That is why we are excited and spending a lot of time and energy in this space,” he told a press conference here today.
According to the bourse filing, the gas-fired power plant is one of the three key H-class projects listed in the 14th 5-Year Plan of Zhejiang Province.
“It uses an H-class gas turbine manufactured by GE Vernova Inc, which is the most efficient gas turbine in the world and the project is expected to be the first H-class unit to operate within the Zhejiang Province when it achieves commercial operation in the fourth quarter of 2025,” it added. — Bernama
