Sembcorp’s Chongqing Power Plant Achieves Full Operation
Sembcorp Industries (Sembcorp) power plant in Chongqing has successfully commenced full commercial operation following the completion of its second 660-megawatt unit. The 1,320-megawatt coal-fired plant comprises two units of 660 megawatts each, with the first unit completed in November 2016.
Located in Anwen, Qijiang district, the 1,320-megawatt power plant utilises supercritical technology and is one of the most efficient power plants in Chongqing. With the successful completion, the plant has begun supplying power to meet rising power demand in Chongqing and support the development and growth of Chongqing’s economy.
The approximately RMB 4.67 billion (around S$966.5 million) power plant is developed by ChongQing SongZao Sembcorp Electric Power, a 49:51 joint venture between Sembcorp’s wholly-owned subsidiary Sembcorp (China) Holding Co and Chongqing Energy Investment Group’s subsidiary Chongqing Songzao Coal and Power. Owned by the Chongqing Municipal Government, Chongqing Energy Investment Group is the largest energy production and supply group in Chongqing.
ChongQing SongZao Sembcorp Electric Power also currently operates an adjacent 300-megawatt coal-fired power plant. The two plants are the only mine-mouth coal-fired power plants in Chongqing. This strategic location brings about significant savings in total cost for the delivered coal and enables the plants to produce power competitively.
The 1,320-megawatt power plant is the first power project developed by a joint venture between a Singapore-based company and China-based company in Chongqing. Tang Kin Fei, Group President & CEO of Sembcorp, said, “The successful completion of the power plant marks an important milestone for Sembcorp in our expansion of our energy portfolio in China. The project, which was completed ahead of schedule, bears testimony to the successful cooperation between Sembcorp and Chongqing Energy Investment Group. The power plant will also help to meet the increasing power needs in Chongqing.”
Sembcorp currently has 2,856 megawatts of thermal and renewable power capacity in China in operation and under development. Besides the power project in Chongqing, the company’s energy portfolio in China also includes a gas-fired power plant in Shanghai and wind farms in Inner Mongolia and Hebei.
The completion of the power plant is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries (U96.SI) for the current financial year.