Malaysia Building Two 1,000-Megawatt, Coal-Fired Power Stations

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Malaysia's Tenaga Nasional Bhd (OTC:TNABY) (TNB) (Kuala Lumpur) will construct two 1,000-megawatt (MW), coal-fired power plants in Manjung, Perak, to meet the country's rising demand for electricity. The two plants will primarily supply the domestic market. Construction is due to start soon, and completion is scheduled for 2017.

Daelim Industrial Corporation (KSX:00210.KS) (Seoul, South Korea) has the engineering, procurement and construction (EPC) contract for the first $1.3 billion power station.

Zainuddin Ibrahim, TNB's vice president of generation, said that Malaysia consumes between 15 and 16 gigawatts (GW) per day. Power consumption was expected to grow at a rate of 5% annually, he said.

TNB's power generation fuel feed ratio is 35% to 40% from coal, 50% from natural gas, and the balance from renewable energy. More than 80% of coal used in Malaysia is imported from Indonesia, South Africa and Australia.

"We consume about 42 million tons of coal annually, with the amount expected to increase," Ibrahim said. He added that Asia was the biggest global market for coal for power generation, accounting for 67% of the total. Last year, 7.8 billion tons of coal was consumed globally, representing an annual growth rate of 2.9%.

The project announcement was made at the Third Annual Asian Sub-Bituminous Coal User Group conference last week in Malaysia. The conference was attended by more than 140 industry professionals from 15 countries, including Malaysia, the U.S., U.K., South Korea, Thailand, Indonesia and Russia.

For related information, see July 30, 2013, article - Malaysia Starts $72 Billion Project Plan to Become 'Smart Grid Nation.'

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