Sembcorp Industries suspends Myingyan Power Plant operations amid escalating unrest in Myanmar

Singapore-based Sembcorp Industries, backed by the government-owned investment firm Temasek, announced on Monday the temporary suspension of operations at its Myingyan Independent Power Plant in Mandalay, Myanmar.

The decision follows escalating civil unrest in the region, including in the Myingyan township, where the US$300 million, 225-megawatt (MW) gas-fired power plant is located.

The Myingyan power plant, which began operations in 2018, is one of the largest independent gas-fired plants in Myanmar, employing over 70 workers and supplying electricity to five million people.

Built under an agreement with Myanmar’s Ministry of Electricity and Energy, the plant was expected to play a key role in meeting the country’s growing demand for electricity. Sembcorp Myingyan Power Company had agreed to operate the plant for 22 years before transferring it to the Myanmar government.

The recent suspension of operations comes after People’s Defence Force (PDF) forces launched attacks in the Taungtha, Natogyi, and Myingyan townships on Saturday, including an attack on a junta base located only about six kilometers (four miles) from the power plant. Sembcorp cited these escalating security concerns as the reason for halting operations, noting that they will resume as soon as conditions are deemed safe.

“Sembcorp will look to resume operations at the Plant as soon as reasonably practicable once conditions are safe,” the company said in a statement.

However, the exact timing of the suspension remains unclear. The Yangon Electricity Supply Corporation indicated that Sembcorp’s plant, along with another nearby one, ceased operations around noon on Tuesday. The company warned of reduced power supplies as a result.

The temporary closure of the Myingyan plant is expected to exacerbate the already unstable power supply in Myanmar.

Aung Myo Lat, a former Myingyan member of parliament for the ousted National League for Democracy, told Radio Free Asia (RFA) that significant power cuts could be anticipated.

“Now that Sembcorp has been suspended, the amount of power supplied nationwide will be significantly reduced,” he said. “There may be more power cuts than before, and the electricity may decrease a lot. That’s just something else we’ll have to deal with.”

The Sembcorp Myingyan plant has previously come under scrutiny due to allegations of indirectly supporting the Myanmar military’s weapons industry.

In October last year, the advocacy group Gutzy raised concerns about the plant’s connection to the Myingyan No. 1 Steel Mill, which is believed to produce steel for the Defence Industry (DDI), managed by the Myanmar junta.

Gutzy questioned Sembcorp about whether it was aware of this connection and how it responded to allegations of indirectly supporting the junta’s weapon production.

In response, Sembcorp clarified that “The power generated from the Sembcorp Myingyan Independent Power Plant is sold to the Electric Power Generation Enterprise, a power department within the Ministry of Electricity and Energy. The Ministry of Electricity and Energy is responsible for the transmission and distribution of electricity to consumers in Myanmar.”