Mitsui invests in MAXpower Myanmar

Mitsui has acquired a 44% stake in a Myanmar-based power plant from Indonesia’s leading fire-to-power business MAXpower group.

MAXpower Asia Group Ltd (MGPL), a Jakarta-based gas-to-fire generation company has sold 44 percent of its Myanmar subsidiary, MAXpower (Thaketa) Co – a gas-fired generation plant consisting of 16 general electric Jenbacher gas engine generator units with 50 megawatts (MW) collective capacity – to Japanese diversified infrastructure group Mitsui.

The move, as Myanmar gradually liberalises, is intended to be the first of many associations between the two groups with Mitsui aiming to expand in the Southeast Asia region thanks to MAXpower’s presence in Singapore, Thailand and Indonesia.

“Mitsui will pursue new power business opportunities in Myanmar, which is one of the priority countries for Mitsui, by leveraging its participation in the project. The project strengthens the partnership between MGPL and Mitsui, and the companies intend to co-develop a new distributed power business not only in Myanmar but in other countries in Southeast Asia that anticipate rapid growth in electricity demand,” said Mitsui president and chief executive officer Masami Lijima.

The share purchase in the first wholly foreign-owned power plant in the country reaffirms Mitsui’s presence in Yangon where the group signed a memorandum of understanding in September last year for water supply and water treatment cooperation with the Yangon city authorities. Its subsidiary, Mitsui Oil Exploration Co, also holds oil and gas exploration operations in the country.

The project commenced commercial operation in August 2013 with MPPL engaged in a 30-year electricity power purchase agreement with Myanmar Electric Power Enterprise.

MPPL delivers stable power supply engines running on environmentally-friendly natural gas, in alignment with its mandate to service remote and under-supplied areas with scalable and affordable gas-fired power through projects ranging in size from 1MW to 200MW.