NEWS & UPDATES
Sarawak Energy Inks Power Purchase Agreement With Press Metal To Supply Additional 500MW
KUCHING, 22nd DECEMBER 2014, MONDAY: Sarawak Energy has entered into another Power Purchase Agreement (PPA) with Press Metal Berhad for the supply of an additional 500MW signifying investors’ confidence in Sarawak’s industrial outlook.
The supply will go towards Press Metal’s Phase III of its aluminium smelter located at Samalaju Industrial Park in Bintulu. Sarawak Energy through its wholly-owned subsidiary company Syarikat SESCO Berhad (SESCO) and Press Metal signed the PPA at Menara Sarawak Energy here last Tuesday.
Signing on behalf of Sarawak Energy were Chief Executive Officer Datuk Torstein Dale Sjotveit and General Manager for Legal Stephanie Gae Chin while signing for Press Metal were Group Chief Executive Officer Dato’ Koon Poh Keong and Executive Vice Chairman Koon Poh Ming.
Speaking at the signing ceremony, Datuk Torstein said, “This demonstrates Press Metal's continued confidence in our ability to deliver reliable energy to power their expansion plans in Sarawak, and help them meet growing global market demand." Phase III will allow Press Metal to double its smelting capacity for aluminium ingots in Samalaju to 640,000 tonnes from the present 320,000 tonnes, helping the company meet fast-growing global demand for aluminium.
The success of SCORE, in which Sarawak Energy is the primary catalyst, has triggered strong growth in industrial demand of electricity supply. Early investors in SCORE reported that their decision to invest in Sarawak was based on the abundant, reliable and competitively priced electricity, a young and educated workforce and the state’s ability to offer attractive investment incentives, to name a few.
To date, Sarawak Energy has signed 14 agreements with a total supply of approximately 3,100MW. Sarawak Energy’s projections indicate that by 2020, the energy demand will increase to 5,000MW.
Dato’ Koon added, “The construction of Phase III of our aluminium smelter signifies that our presence in the aluminium industry is growing from strength to strength. Our total smelting capacity will increase to 760,000 tonnes which is approximately 1.5% of the global production, upon full commissioning of the new plant.”
Dato’ Koon expressed his confidence that the Phase III Smelter, with access to reliable power supply, and its strategic location in Samalaju, will be operating within the first quartile of the global cost curve.
“We appreciate Sarawak Energy’s support in our operations in the state. This solid partnership will definitely provide a win-win situation for both sides,” added Dato’ Koon.
Sarawak Energy will continue to pursue the development of indigenous hydro, coal and gas resources to meet power demand under the SCORE agenda and local organic customer growth. Sarawak aims for an optimal generation capacity mix of 60% hydro, 20% coal and the remaining from gas by 2020.
The company is committed towards harnessing the state’s abundant hydroelectricity resources in a sustainable manner, compliant with Sarawak and Malaysian law and guided by international best practices.