Genting Sanyen aims to buy more power assets in Asia


  • Business
  • Friday, 06 Jun 2003

GENTING Sanyen Power Sdn Bhd, the power generation division of Genting Bhd, will continue to look out for opportunities to acquire more power assets in India and other parts of Asia. 

Genting Sanyen group chief executive officer Ong Tiong Soon said India would be a potential place of investment given that it was likely to be the next country to open up to liberalisation after China. 

“We are encouraged by the first power plant purchased. It is now a good time for us to position ourselves,'' he told a press conference after the launch of Genting Sanyen Industrial Paper Sdn Bhd's (GSIP) waste-to-energy plant in Kuala Langat yesterday. 

Minister of Energy, Communications and Multimedia Datuk Amar Leo Moggie (second from right) signs on a computer screen to launch Genting Sanyen Industrial Paper Sdn Bhd's waste-to-energy power plant in Kuala Langat. Genting Sanyen Group chief executive officer Ong Tiong Soon (right most), Deputy Secretary-General (II) of Ministry of Energy, Communications & Multimedia Datuk Syed Hamzah Othman (left most), Director General of The New Energy and Industrial Technology Development Organisation of Japan (NEDO) Hiroyuki Ochiai (second from left), and Genting Bhd executive director Tan Sri Mohamed Amin Osman look on.

In addition, Ong said, the group was exploring opportunities for power generation assets in Thailand and Indonesia. 

Genting Sanyen Power (Labuan) Ltd paid US$27.58mil (RM104.8mil) last Friday to buy the entire stake in NRGenerating Holdings, which holds a 30% stake in Lanco Kondapalli Power Pte Ltd that owns a 368-megawatt combined cycle gas fired power plant in Hyderabad, India. 

NRGenerating Holdings also owns 74% equity interest in Eastern Generation Services (India) Pte Ltd, the operator and manager of the power plant. 

Replying to a question on market talk that the Genting group was working with Tenaga Nasional Bhd (TNB) to build a coal-fired power plant, Ong said: “That's news to me. We are always working with TNB. But it is difficult for us to pinpoint where, how many (projects), and who comes first.''  

He added that the group had entered into an agreement in May last year to buy a 40% stake in Sepang Power Sdn Bhd from TNB. It had so far paid 10% of the purchase consideration of RM65.7mil. 

“There are factors that are not within our control. We have so many contracting parties, and we need the approval of the authorities,'' Ong said when commenting on the pace of the transaction. 

Genting Sanyen group's waste-to-energy plant is the first of its kind in Malaysia. The plant has a design capacity to treat 110 BDT (bone dry ton) per day of waste sludge, sufficient to treat the total sludge generated by GSIP. 

GSIP's paper mill produces 350 tonnes of sludge per day or 130,000 tonnes per year. 

Energy, Communications and Multimedia Minister Datuk Amar Leo Moggie, who launched the plant yesterday, said it served as a model to other industries in the country in helping to address the problem of solid waste management. 

The plant is capable of reducing total solid waste by 90%. Only 9% of the bulk sludge of residual ash is disposed of in local landfill facilities.  

The recycling facilities will also result in savings of about RM6mil annually in fuel as a result of lower fuel consumption needed to generate steam. The reduction in fuel consumption prevents a discharge of carbon dioxide of 102,500 tonnes per year into the atmosphere. 

The plant is a joint venture between New Energy and Industrial Technology Development Organisation (NEDO) of Japan and GSIP.  

The Japanese government provided the machinery, software and hardware, and technical knowhow, while GSIP contributed land and civil structures. 

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