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Shanghai Electric Achieves Major Milestone in Energy Sector

In a groundbreaking move for its international operations, Shanghai Electric (SEHK: 02727, SSE: 601727) has successfully secured its first overseas order to supply a high-performance gas turbine for the 500 MW Sarawak Samalaju Combined Cycle Gas Turbine (CCGT) power project in Malaysia. This achievement underscores the global recognition of Shanghai Electric’s sophisticated gas turbine technology and reflects its increasing competitiveness in the international gas turbine market.

The contract entails a turn-key delivery of a complete gas turbine power plant under an Engineering, Procurement, and Construction (EPC) model. Additionally, Shanghai Electric will provide comprehensive service support for 25 years as part of a long-term service agreement (LTSA), covering all major equipment. Notably, all essential components—including the gas turbines, steam turbines, generators, heat recovery boilers, and air-cooling systems—will be manufactured in-house at Shanghai Electric’s facilities. Consequently, the company will be the exclusive provider of long-term maintenance and service, ensuring that it can effectively manage the entire lifecycle of the installation—from equipment production to system integration and operational support for decades.

This vertically integrated model places Shanghai Electric on par with leading global players in the high-performance gas turbine sector. Its current lineup of high-capacity gas turbines includes two main models rated at 300 MW and 78 MW, respectively. To date, the company has delivered 103 units, accumulating an installed capacity of over 21,000 MW. The units operated under Shanghai Electric’s long-term servicing and maintenance programs have collectively logged over 1.3 million hours of operation. With substantial manufacturing capabilities across both classes of turbines, Shanghai Electric can commence deliveries of new units as early as 2028.

Beyond the contract with the Malaysian power entity, there is significant interest from investors in Indonesia, Thailand, the Philippines, and Vietnam, signaling potential future orders. This order not only symbolizes a significant step for Shanghai Electric into the international energy market but also showcases the rising demand for advanced gas turbine technology as countries worldwide continue to invest in energy modernization and sustainability.

In conclusion, Shanghai Electric's recent achievement signifies a critical milestone in its expansion into the global energy sector, paving the way for future opportunities and reinforcing the company's standing as a competitive force in the field of gas turbines. The company's strategy of in-house production and integrated service offerings positions it well for continued growth and success in international markets.