Friday 29 Mar 2024
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KUALA LUMPUR: YTL Power International Bhd’s 30%-controlled Attarat Power Co (APCO) is one step closer to finalising the 554mw oil shale-fired power plant in Jordan, following the signing of an engineering, procurement and construction (EPC) contract earlier this week.

Coincidentally, the company’s share price has risen over 19% in the past two months, hitting a peak of RM1.63 on Tuesday, the highest since April. YTL Power’s share price cooled to RM1.59 as of yesterday’s closing.

According to various reports, APCO has signed on China’s Guangdong Power Engineering Corp (GPEC) as the EPC contractor to build the oil shale plant that is due to be completed in the second half of 2018, with construction expected to start next year.

The contract was signed following APCO’s finalised negotiations with the Jordan government for a 30-year power purchase agreement signed last month, with an option for a 10-year extension.

YTL Power’s partners for the project, which is scheduled to start generating electricity for local consumption in the second half of 2018, are Estonia’s Eesti Energia AS, which holds 65%, and Jordan’s Near East Investments Co, which has 5%.

Foster Wheeler AG will provide the circulating fluidised bed boiler island, Siemens AG will supply the steam turbine generator and Worley Parsons Ltd will provide the plant design for the project.

YTL Power’s share price performance has been lacklustre over the past year after it failed to secure any new power projects in Malaysia, while its Yes 4G mobile broadband business continues to drain funds.

However, the company announced a surprise 10 sen dividend in mid-September.

 

This article first appeared in The Edge Financial Daily, on November 6, 2014

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