On December 20, 2005, Xiamen CCGT Project (Phase I) was approved by China’s National Development and Reform Commission (NDRC).The success in obtaining approval by NDRC is a critical milestone in the development of our Xiamen CCGT Project – the first combined cycle gas turbine (CCGT) power plant project to be developed and constructed by a wholly foreign-owned company in China.
The Xiamen CCGT project is also a significant milestone of the energy programmes developed by PO&G in China. The project is to be constructed, owned and operated by EAP through its wholly-owned project company in China. The planned installed capacity of the project is 4X390MW (or 1,560MW) in total, with 2X390MW for phase I. The project is one of the major power plants associated with the Fujian LNG Project. Upon completion of the construction, Xiamen CCGT power plant will play a significant role in meeting energy demands and environmental requirements in the expanding economic development of the Xiamen municipality.
EAP first signed an Investment Framework Agreement for the Xiamen CCGT project with the Xiamen government in September 2003. This was then followed by the signing of the Agreement of Principles on Power Purchase and Sale with the Fujian Grid Company in August 2004. On August 20, 2005, EAP again signed the Power Purchase Agreement with the Fujian Grid Company as well as the Gas Supply and Purchase Agreement with CNOOC Fujian LNG Co., Ltd, based on renegotiated and improved terms and conditions. On December 20th 2005, the state approval for the Xiamen CCGT Project was successfully obtained after NDRC’s review and approval.
According to Mr. Leow Foon Lee, EAP China president: “Our success in obtaining NDRC’s approval for the Xiamen CCGT project represents a critical milestone in the implementation of our strategy to develop an integrated clean energy business for the group. A gas-fired power plant has the advantage of generating clean, efficient energy with low emissions, which meets today’s most stringent environmental requirements. We will strictly implement the regulations on environmental protection during each stage of the project construction. EAP will continue to make efforts to develop clean energy with competitive advantages in China”.