Gulf strengthens regional base with Vietnam, Laos plants

Gulf strengthens regional base with Vietnam, Laos plants

SET-listed Gulf Energy Development Plc plans to develop power plants in Vietnam and Laos to strengthen its business presence in Indochina.

Ratthaphol Cheunsomchit, deputy chief executive, said Gulf submitted its power generation plan to the Vietnam government for future development of a gas-fired power plant with an initial capacity of 6,000 megawatts (MW).

Gulf plans to import liquefied natural gas (LNG) as fuel for the project in Vietnam, he said.

For Laos, Gulf wants to develop a hydroelectric power plant with a Chinese company to distribute electricity to the state-run Electricity Generating Authority of Thailand. The project in Laos is projected to have a capacity of 2,500MW, of which Gulf plans to have a 30-35% stake.

"A final decision will be made on the two new power plants sometime in 2020," said Mr Ratthaphol.

"For Vietnam, the gas-fired power plant is part of Gulf's plan to become an LNG shipper in Southeast Asia because of rising gas demand."

These large projects were planned after two gas-fired power plants with a capacity of 5,200MW in Chon Buri and Rayong began construction.

Half of the capacity for the Thai plants will be developed by Gulf SRC Co (GSRC) and half by Gulf PD Co (GPD).

GSRC and GPD are 70%-owned by Gulf, with 30% held by Mitsui & Co. The projects have long-term gas purchase contracts with national oil and gas conglomerate PTT Plc.

GSRC is located in Sri Racha district, Chon Buri, and the operation date for the plant is between March 2021 and October 2022.

GPD, located in Pluak Daeng district, Rayong, set an operation date for 2024.

Gulf aims to increase its power capacity under ownership to 6,906MW by 2024 from the two local power projects. Currently Gulf operates 2,673MW.

Yupapin Wangviwat, Gulf's executive director, said its consortium companies were selected as winning bidders for four megaprojects.

Two projects are in the flagship Eastern Economic Corridor scheme -- the third phases of the Laem Chabang seaport (114 billion baht) and Map Ta Phut seaport (55.4 billion).

PTT Tank Terminal Co and Gulf formed a consortium for two seaports.

In addition, Gulf formed a consortium with Ratch Group Plc, BTS Group Holdings Plc and Sino-Thai Engineering and Construction Plc that was selected as the winning bidder for operation and maintenance of two motorways -- the 196-kilometre Bang Pa-in-Saraburi-Nakhon Ratchasima (33.3 billion baht) and 96km Bang Yai-Kanchanaburi (27.8 billion), with a concession for 30 years.

Ms Yupapin said Gulf expects to increase revenue from infrastructure projects to 20% of total revenue in 5-7 years.

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