UPDATE 2-A-Power unit signs MoU to build gas terminals, shrs up

* Total project cost estimated at $1.5 bln

* Construction to take 2 yrs, could start next year

* To also build 2,400 MW natural gas power plant

* Shares rise almost 26 pct (Adds detail, analyst comments, updates share movement)

By Adveith Nair

BANGALORE, July 10 (Reuters) - A-Power Energy Generation Systems Ltd (APWR.O) said its unit, the Shenyang Power Group, signed a memorandum of understanding with the Macau Natural Gas Co to construct a $1.5 billion offshore liquefied natural gas (LNG) complex, sending its shares up almost 26 percent.

Shares of the company, which provides distributed power generation systems in China, rose to a high of $8.99 in early trade, before paring some gains to trade up 17 percent at $8.40 later in the day. The stock was the third highest percentage gainer on Nasdaq.

"The contract is a big positive. It is by far the largest contract that A-Power has ever had," Raymond James analyst Pavel Molchanov told Reuters.

It is a sign of confidence in A-Power's ability to pull off a project of this magnitude, Molchanov said, adding that the economics should be "very significant" in the long run.