Shanghai Electric Wins Bid for 500MW Gas Turbine Project in Malaysia

Shanghai Electric has secured a contract to supply Unit 3 of the Samalaju Combined Cycle Gas Turbine project in Sarawak, Malaysia, marking the first overseas deployment of its complete heavy-duty gas turbine power generation package. Developed by Sarawak Energy, the 500-megawatt-class facility will incorporate Shanghai Electric's independently manufactured gas turbine alongside steam turbines, generators, and balance-of-plant systems. The Chinese equipment manufacturer will also deliver full engineering, procurement, construction, and commissioning services, backed by long-term service coverage spanning up to 25 years amid tight global gas turbine supply.

Heavy-duty gas turbines have long been dominated globally by a small cohort of Western and Japanese industrial conglomerates. Securing a primary equipment and turnkey contract in Southeast Asia validates the export readiness of China's domestically manufactured heavy-duty gas turbines and demonstrates that Chinese power equipment suppliers can compete on comprehensive, full-lifecycle service agreements in high-specification overseas markets.

Shanghai Electric has won the contract to supply Unit 3 of the Samalaju Combined Cycle Gas Turbine project in Sarawak, Malaysia, marking the first international commercial deployment of its complete heavy-duty gas turbine solution, according to a report by People's Daily. The project is situated in the Samalaju Industrial Park in the Malaysian state of Sarawak and is being developed by Sarawak Energy as a key regional energy infrastructure asset. The planned installation will deploy a 500-megawatt-class gas-steam combined-cycle power generation unit using advanced combined-cycle technology designed to expand regional power capacity and enhance overall fuel efficiency. Under the terms of the agreement, Shanghai Electric will serve as the primary equipment supplier across an integrated supply chain model encompassing high-end manufacturing, engineering procurement and construction, and lifecycle technical support. The scope of supply covers primary machinery including the gas turbine, steam turbine, power generator, heat recovery steam generator (HRSG), and air cooling systems, as well as comprehensive engineering design, procurement, construction, commissioning, and ancillary technical services. Crucially, the central power unit—the heavy-duty gas turbine—will be independently manufactured by Shanghai Electric. Chinese state media noted that the deployment is intended to substantiate Shanghai Electric's competitiveness in heavy turbomachinery manufacturing and integrated systems engineering against established international rivals. The award comes against a backdrop of tight global supply capacity for heavy-duty gas turbines. People's Daily reported that the contract highlights Shanghai Electric's technical capability to provide full-lifecycle coverage extending from standalone equipment fabrication to 25-year long-term service agreements (LTSAs). Shanghai Electric stated that it plans to leverage the Sarawak project to deepen its commercial footprint across Malaysia and the broader Southeast Asian power generation market to support regional energy transition programs.