Sembcorp has one foot in the door of Myanmar’s promising utilities market: analysts

It’s building a US$300m gas power plant in Myanmar.

Sembcorp Industries plans to make a deep mark in the Southeast Asian country, starting with building the biggest gas-fired independent power plant in Myanmar.

According to a report by RHB Research, it will own 80% of the power plant, with 20% going to MMID Utilities.

“With completion expected in FY18, the power plant will supply power to Myanmar Electric Power Enterprise under a 22-year power purchase agreement,” RHB Research said.

Meanwhile, RHB said the plant will address the severe power deficit problem in Myanmar, and Sembcorp sees it as an opportunity to venture into other businesses in Myanmar, such as water and urban development.

“Considering the company’s track record in electricity generation, water management and urban development, we believe there would be plenty of opportunities for it to take part in the infrastructure development of Myanmar,” the report said.

It also expects add over 3,800MW of power and over 1.3 cu m per day of water and wastewater treatment capacity from FY16F to FY18F with a slew of projects in India, Singapore, United Kingdom, Bangladesh and Myanmar, RHB said.

“Apart from thermal electricity generation from coal and gas, it is also developing its capability in renewable power with wind turbine projects in India and China as well as thermal energy from waste in Singapore and Teeside, UK,” RHB said.