Ratch allots B1.25bn for Laos plant

Ratch allots B1.25bn for Laos plant

SET-listed Ratchaburi Electricity Generating Holding Plc (RATCH), Thailand's largest private power producer, is expected to spend 1.25 billion baht next year on the Hongsa power plant project in Laos, says president Phongdit Photchana.

The first phase of the 1,878-megawatt Hongsa project is expected to be operational next June. This is part of a 34-billion-baht investment budget for 2014-15 excluding 6.5 billion set aside for mergers and acquisitions.

Mr Phongdit said the 34 billion baht was for its energy development projects in Cambodia, Laos, Myanmar, Vietnam and Australia.

The first is a 2,460-MW coal-fired power plant in Myeik, Myanmar, with an investment value of about US$4 billion. Ratch owns 45% of the project. The company is expected to sign a memorandum of understanding with the Myanmar government by late next year or the first quarter of 2016.

Another coal-fired power plant is in Kengtung in Myanmar's Shan state, with capacity of 600 MW. The company owns 55% of the US$1-billion project and expects to sign an agreement with the Myanmar government next April.

"We're conducting feasibility studies for both projects. We have to know whether they are commercially viable," Mr Phongdit said.

Ratch also joined with PTT to develop the liquefied natural gas (LNG) receiving terminal phase three, which should feed its gas-fired power plant in Thailand. The company expects to own 20-30% of the LNG terminal project.

"The LNG terminal project in Myanmar will have capacity of 5 million tonnes. It will provide us with a new source of gas after our contracts for the Yadana and Yetagun blocks in Myanmar expire," Mr Phongdit said.

Ratch also plans to develop a wind power plant in Australia with output of 180 MW and a 230-kilovolt-transmission line in Cambodia spanning 125 kilometres that should conclude investment details this year. The company is expected to invest 3 billion baht with a 50% holding in the transmission line.

In Guong Tri, Vietnam, Ratch is investing in a 1,200-MW coal-fired power plant valued at $2 billion, taking a 30% stake.

The total investment budget excludes two coal mines in Indonesia, where it found 200-300 million tonnes of coal reserves.

"We need three months to look thoroughly before making a decision to enter this line of business. If so, we'll hold 10-20% in each mine," said Mr Phongdit.

RATCH shares closed yesterday on the SET at 61.25 baht, unchanged, in trade worth 30.5 million baht.

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