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The deal is seen as a milestone in the international commercialization of China’s heavy-duty gas turbine technology, CNS said in a news report issued on Sept. 29.
According to the report, Shanghai Electric will provide a complete package of major equipment for the 500-megawatt-class power plant, including gas and steam turbines, generators, heat recovery steam generators (HRSGs) and an air-cooled system.
It will also serve as an engineering, procurement and construction (EPC) contractor and provide long-term lifecycle services covering the major equipment,.
“This is not simply an equipment export, but a substantive breakthrough for China’s heavy-duty gas turbines in international commercial competition,” Li Wenkai, deputy head of the Power Generation Engineering Consultancy Department under the China Electric Power Planning & Engineering Institute, quoted as saying by CNS.
Meanwhile, Shanghai Electric is also providing an integrated solution, with the core equipment manufactured within its own industrial system and coordinated under a unified project framework, CNS said.
Unlike projects that combine equipment from multiple suppliers, this model reduces the need for owners or EPC contractors to coordinate interfaces, technical parameters and control systems across different vendors. It also brings responsibility, technical interfaces, performance guarantees and project management under a unified framework, said the report.
“The Malaysian market is a mature commercial market, where clients make equipment selections based on technology, delivery and full lifecycle costs,” Liu Zhitan, deputy director of the Gas Turbine Power Generation Specialized Committee of the Chinese Society for Electrical Engineering, told CNS.
The successful bid means Shanghai Electric’s gas turbine products and integrated solutions are beginning to undergo commercial validation in a mature overseas market, Liu said.
Shanghai Electric has built up a presence in Malaysia through a range of energy projects, including the 2×300-megawatt Balingian coal-fired power plant, renewable energy projects in Selangor and the TG12 renewable energy project. In Sarawak, it has also completed a 106-kilometer, 500-kilovolt transmission line and built the state’s first off-grid microgrid project.
Such a local footprint provides an important foundation for the company to introduce core equipment into overseas markets, while strengthening its experience in project delivery and local services, CNS noted in the report.
The Samalaju project demonstrated Shanghai Electric’s overseas engineering competitiveness and core equipment capabilities, marking a shift from “equipment going overseas with engineering projects” toward direct exports of complete equipment and solutions.
The move also reflects changing demand in international power markets. Overseas developers are increasingly seeking turnkey solutions backed by long-term services rather than procuring individual pieces of equipment from multiple suppliers, said the Chinese media.
For years, China’s high-end equipment exports were mainly individual machines and equipment, with competition focused largely on hardware prices, leaving limited margins and little room for brand premiums, Liu said.
Shanghai Electric’s approach seeks to move beyond hardware-based competition by offering integrated solutions and full life-cycle support, he added.
The development comes as the global gas turbine market faces tight supply. Data shows that global gas turbine orders reached about 90-100 GW in 2025, while global manufacturing capacity stood at around 55–60 GW, highlighting a significant supply-demand imbalance.
Against this backdrop, overseas developers that have traditionally relied on established international suppliers are increasingly consider alternative providers, particularly Chinese companies capable of offering shorter delivery times and integrated solutions, Li said.
Shanghai Electric has identified global expansion as a key priority during the 15th Five-Year Plan period (2026-2030). It outlined three shifts: from a focus on taking engineering projects overseas to a greater emphasis on taking equipment overseas; from simple trade to international investment in production capacity and industrial supply chains; and from individual companies expanding overseas independently to broader, coordinated overseas development.
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