Chinese-owned power plant in Myanmar being relocated

• 15 hours ago (2026-02-25)
• David Flin

Asia 1000 Gas 456

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Equipment at the VPower power plant in Kyaukphyu Township in Arakan State, Myanmar is being dismantled and relocated due to rising civil strife in the region. VPower is a joint venture between the Chinese state-owned China National Technical Import and Export Corporation (CNTIEC) and Hong Kong-based VPower Group .

Local sources say that it is expected the all the equipment will be removed from the site by mid-April.

The €120 million gas-fired facility was designed to generate 150 MW. However, severe gas shortages have meant that it has rarely been able to exceed 60 MW. The plant originally began operations in late 2020 to supply electricity to the Kyaukphyu Special Economic Zone and the national grid.

Located in Gonechwein Village, six miles west of Kyaukphyu, the plant has faced security risks since June 2025 from clashes between government forces and the Arakan Army. Heavy fighting has taken place within two miles of the facility.

A local source said: “The relocation is moving so fast because the conflict in Kyaukphyu is so unpredictable. They are taking the plant apart as quickly as they can to avoid it getting damaged in the fighting.”