Shanghai Electric has secured a contract for Unit 3 of the Samalaju Combined Cycle Gas Turbine project in Sarawak, marking the first overseas deployment of one of the Chinese company’s heavy-duty gas turbines.
The company will supply the major equipment package for the 500MW-class power plant while also acting as engineering, procurement and construction contractor.
Its scope includes the gas turbine, steam turbine, generators, heat recovery steam generators and air-cooled systems, alongside long-term lifecycle services covering the principal equipment.
The contract represents a significant step in Shanghai Electric’s international expansion strategy, moving beyond the delivery of engineering projects towards overseas deployment of its own core power generation equipment and integrated solutions.
Integrated delivery model brings equipment and EPC together
Shanghai Electric will manufacture the project’s core equipment through its own industrial system and coordinate delivery under a single project framework.
The approach is intended to reduce the number of technical and commercial interfaces that would typically need to be managed where equipment is sourced from multiple manufacturers.
Responsibility for technical interfaces, control systems, performance guarantees, project management and major equipment will instead sit within an integrated delivery structure.
Li Wenkai, deputy head of the Power Generation Engineering Consultancy Department at the China Electric Power Planning & Engineering Institute, described the contract as a significant international commercial breakthrough for Chinese heavy-duty gas turbine technology.
“This is not simply an equipment export, but a substantive breakthrough for China’s heavy-duty gas turbines in international commercial competition,” he said.
Malaysian project builds on existing delivery experience
Shanghai Electric already has experience delivering energy and transmission infrastructure in Malaysia.
Previous projects include the 2x300MW Balingian coal-fired power plant and renewable energy developments in Selangor, as well as the TG12 renewable energy project.
In Sarawak, the company has completed a 106km, 500kV transmission line and delivered the state’s first off-grid microgrid project.
That existing presence provides Shanghai Electric with local project delivery and service capabilities as it introduces its heavy-duty gas turbine technology to the Malaysian market.
Liu Zhitan, deputy director of the Gas Turbine Power Generation Specialized Committee of the Chinese Society for Electrical Engineering, said technology, delivery performance and whole-life costs are important factors in equipment selection in Malaysia.
The Samalaju contract will therefore provide an opportunity for Shanghai Electric’s turbine technology and integrated delivery model to undergo commercial validation in an established international power market.
Global expansion strategy targets equipment and lifecycle services
The project comes as Shanghai Electric seeks to increase the international deployment of its equipment during China’s 2026–2030 planning period.
Its strategy includes moving from predominantly taking engineering projects overseas towards exporting more equipment, increasing international investment in manufacturing capacity and supply chains, and developing a more coordinated approach to overseas expansion.
The Samalaju project also reflects a wider move towards turnkey power generation packages incorporating engineering, equipment and long-term services within a single delivery model.
For Shanghai Electric, the contract combines its EPC capabilities with its own heavy-duty gas turbine technology, potentially providing a reference project for further international deployment of its integrated power generation offering.
