Cost cuts to boost Gulf’s efficiency
SET-listed Gulf Energy Development Plc, one of Thailand’s largest independent power producers (IPPs), will proceed with the lean operations programme at its 19 gas-fired small power producer (SPP) units to further cut costs from the second half onward.
The goal is to save 20 million baht in costs per SPP unit per year until two new IPP units start commercial operations in 2021.
The programme is aimed at improving power generation efficiency and enhancing capacity utilisation under a tie-line scheme, pooling the operations of the 19 SPP units to better manage off-peak demand from the grid.
Ratthaphol Cheunsomchit, senior executive vice-president and chief development officer, said the tie-line scheme will enable some SPP units to enter “sleep mode” while others run at full utilisation, instead of both running at the same time.
Mr Ratthaphol said Gulf decided to implement the tieline scheme in six SPP units, or three pairs of plants. Plans call for a further four pairs to be added to the tie-line scheme later this year.
Gulf has signed contracts with Mitsubishi and Toshiba to improve power supply under the tie-line scheme.
Farther from home, the company has teamed up with Thanh Thanh Cong Group to develop 50 megawatts of solar farms at a cost of US$53 million (1.7 billion baht).
Gulf holds a 49% stake and the Vietnamese partner owns 51%. The project is expected to start construction in the third quarter this year. Both parties are also planning a second solar farm unit in Vietnam.
Mr Ratthaphol said Gulf will soon close on a 50-billion-baht project loan to develop two gas-fired power plants, which the company will operate under new IPP licences in Chon Buri and Rayong.
He said the two IPP licences were auctioned off in 2013 and include capacity of 5,300MW — half of which will be developed by subsidiary Gulf SRC Co (GSRC) and half by Gulf PD Co (GPD).
Gulf owns 70% each in GSRC and GPD, while Mitsui Corporation holds the remaining stake in both companies.
The loan will finalised by the third quarter to support Gulf’s development of 2,650MW in Chon Buri. GSRC is expected to commence operations of its first and second units in 2021 and 2022, respectively.
The second unit will be developed by GPD in Rayong, but it will require an additional 50 billion baht. Gulf expects to generate 2,650MW and start operations of the first and second units in 2023 and 2024, respectively.
Gulf’s overall capacity is forecast to reach 6,330MW by 2024, up from 2,120MW as of March. The company has 12 ongoing projects, all under SPP licences.
Most of Gulf’s plants are traditional gas-fired. It also runs solar farms and biomass power plants.
Through a partnership with WHA Group, Gulf has diversified into gas distribution for industrial clients. Gas distribution to two Hemaraj industrial estates will begin in 2019.
GULF shares closed yesterday on the Stock Exchange of Thailand at 70.50 baht, down 25 satang, in trade worth 445 million baht.