Rolls-Royce strengthens presence in Myanmar

 

Earlier this year, Bergen Engines, part of Rolls-Royce Power Systems (RRPS), signed a contract with the group for delivery of engines and associated systems for Phase II of the country’s first medium speed gas engine-based power plant, the Hlagwa Power Plant.

“We are excited to be a partner in further developing the electrification of Myanmar,” said Lars Eikeland, president and CEO of Bergen Engines. “Z&A is a very competent partner and we are confident that this will be a successful project. We are also very pleased that this project could be financed by loan facilities from GIEK,” he added, referring to a Norwegian export credit agency.

With 2013 revenue of 15.5 billion pound sterling (US$2.57 billion), UK-based Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers. Around half of its revenue came from the provision of after-market services. 

RGK+Z&A Group is an engineering company based in Myanmar which focuses on thermal power generation, green energy, transmission and distribution industries. The Hlawga Power Plant (Phase I) was built last year using high speed engines and was the first plant to conclude a power purchase agreement with the Ministry of Electric Power.

“We are committed to provide uninterrupted electricity to Myanmar by power generation with minimum resources. We believe that with the state of art solutions from Rolls-Royce Power Systems, we could achieve more output to deliver power,” said Zeya Thura Mon, group and managing director of Zeya & Associates. 

The agreement was signed at the Foreign Commonwealth Office in London and witnessed by Hugo Swire, minister of state at the Foreign and Commonwealth Office, and Khin Maung Soe, Myanmar’s minister of Electric Power.

The Hlawga Power Plant, located in Yangon near the Hlawga combined-cycle power plant, is a gas engine-based independent power plant owned by RGK+Z&A Group. It will deliver power to the Yangon grid and the contract stipulates a capacity of 25 MW. A power purchase agreement and other related agreements for the power plant have already been concluded by RGK+Z&A Group and the Ministry of Electric Power. 

The new power plant will be the first medium speed gas engine based power plant in the country. The contract scope includes the supply of three B35:40V20 gas engines plus complete system engineering. 

RGK+Z&A Group is on its way to develop a portfolio of generating assets with a capacity of 500 megawatts supported by a strong efficient power conversion and operations and maintenance team. The target for the group in power generation is to develop around 100 MW of generation capacity based on natural gas by end of 2015. Beyond this stage, the company would explore generation projects – gas fired as well as renewable sources including municipal waste to energy, wind and solar.

Over the long term, the company plans to be publicly listed in the upcoming Yangon Stock Exchange and raise capital for larger projects.

Energy infrastructure in Myanmar is still developing. The country’s electrification rate is 26 per cent and demand is expected to grow rapidly. Annual growth of 15 per cent is projected. Gas is available in centres of electricity demand and can be the source of more environmentally friendly power through the use of high efficiency gas engines.