ALL FIRED UP
Loan for project expected by Q3
Gulf Energy expects to land a B50 billion loan to build a gas-fired power plant in Chon Buri province.
SET-listed Gulf Energy Development Plc (GULF), one of Thailand’s largest power producers, says it will soon close a 50-billion-baht project loan to develop a gas-fired power plant, which the company will operate under its independent power producer (IPP) licence, says chief executive Sarath Ratanavadi.
Gulf won two IPP licences in an auction conducted by energy policymakers in 2013. The licence entitles it to develop assets to produce 5,200 megawatts, half of which will be developed by its subsidiary, Gulf SRC Co (GSRC), and the remaining half will be developed by Gulf PD Co (GPD).
Gulf owns 70% of both GSRC and GPD. Mitsui Corporation owns the remainder of the companies.
Mr Sarath said the loan, expected to be signed in the third quarter of this year, will help the company develop 2,650MW in Chon Buri province. Half of the credit will be denominated in baht and half in US dollars.
GSRC is expected to commence operations of its first unit in 2021, and its second in 2022.
The second unit, also a gas-fired power plant, will be developed by GPD in Rayong, and will need another 50 billion baht in financing.
GPD, expected to generate a total of 2,650 MW, expects to start operating its first unit in 2023, and its second in 2024.
GSRC and GPD already signed gas purchase contracts with PTT Plc.
If everything goes according to plan, Gulf aims to be a top three private power generator in Thailand, along with Ratchburi Electricity Generating Holding Plc and Electricity Generating Plc.
The company expects to expand its capacity (by ownership percentage) to 6,330MW by 2024, up from 2,120MW in March of this year. It has 12 ongoing projects on hand, all under the small power producer (SPP) licence.
Each SPP licence allows capacity of 120MW, 90MW of which it plans to sell to the Electricity Generating Authority of Thailand (Egat).
The first four licences have been in operation since last year, with an additional four licences set to begin operations this year. The remaining four are expected to be functional in 2019.
All of Gulf ’s plants are traditionally gas-fired.
Mr Sarath said the company is looking to expand its capacity by developing new fossil-fired power plants in Oman and the US, as well as solar farms in Vietnam.
The company is also planning to expand its revenue streams by becoming a liquefied natural gas service provider and shipper, requesting the appropriate licence from the Energy Regulatory Commission (ERC) since 2015.
The request was denied by ERC at the time, but Gulf plans to file an appeal soon.
Gulf started its diversification into gas in December 2017 when it partnered with WHA Group, the country’s largest industrial developer, to distribute gas to clients in WHA’s estate.
The company will start distributing gas in the Hemaraj Eastern Seaboard Estates 2 and 4 in the first half this year.