Petronas Enters Deal to Buy 30 Percent Stake in GMR Energy Singapore
PETRONAS, through wholly owned subsidiary PETRONAS International Corporation Ltd, has entered into an agreement with GMR Infrastructure (Singapore) Pte Ltd and GMR Infrastructure Ltd – both subsidiaries of GMR Group, India – to acquire a 30% stake in GMR Energy Singapore Pte Ltd (GMRE).
The agreement for the proposed acquisition was signed in Singapore on 24 September 2011.
GMRE is developing an 800MW combined cycle gas turbine power plant in Jurong Island, Singapore. To be fuelled by re-gasified liquefied natural gas (LNG), the power plant will be designed and constructed by a consortium consisting of Siemens and Samsung.
Block 1 of the two-block plant is expected to be completed by November 2013, with the second block in December 2013. Once the plant is commercially operational, GMRE’s electricity supply business will be managed by its wholly owned subsidiary GMR Supply Singapore Pte Ltd, which holds an electricity retail license in Singapore.
The proposed acquisition marks PETRONAS’ maiden venture into the international power market, and is a major step in its effort to extend its existing integrated presence further along the energy value chain as part of its future growth strategy.
Source: PETRONAS, September 29, 2011