CKI Confirms Plans To Invest In Liaoning Power Plants
24 November, 1996 - Hong Kong
Cheung Kong Infrastructure Holdings Ltd (CKI) confirmed that it had recently signed three agreements to develop heat and electricity co-generation power plants in Fushun City, Liaoning Province.
CKI plans to invest RMB 450 million in the RMB 740 million project, which will have a joint venture period of 20 years. The plants have a combined installed capacity of 170 MW (megawatts) of electricity, which is generated by two PRC-manufactured generators and one technologically advanced European generator. Their output will be dedicated for Fushun City use.
In addition to supplying electricity, the plants will also supply heat for local use in the forms of high and low pressure steam. High pressure steam is mainly used by the aluminum plants, petro-chemical plants and other heavy industries in the vicinity; while low pressure steam is utilised for domestic heating in the winter.
Previously, CKI's power investments have been in plants solely dedicated to the generation of electricity. If the Fushun agreements materialise, they will be CKI's first investments in such co-generation plants.
The plants have an annual generating capacity of 1 billion kWh (kilowatt hours) of electricity and 6 million GJ (gigajoules) of heat. Such electricity generating capacity will equate to approximately 20% of Fushun City's annual electricity consumption.
38% of the plants' revenue will come from heat, while 62% will come from electricity.
According to Mr H L Kam, Managing Director of Cheung Kong Infrastructure Limited, "These Fushun City power agreements are amongst the many agreements and letters of intent signed in the past few months pertaining to power."
"As of now, we are negotiating projects in Liaoning, Hebei, Henan, and Guangdong, for a total capacity of over 2,000 MW - of which we have already signed agreements and letters of intent for over 1,000 MW," Mr Kam explained.