The Industrial Estate Authority of Thailand (IEAT) has signed a public-private partnership (PPP) contract with Gulf MTP LNG Terminal to develop the third phase of Map Ta Phut seaport, worth 55.4 billion baht, on 1,000 rai.
Gulf MTP LNG Terminal won the bid for Map Ta Phut port. The company is a joint venture of Gulf Energy Development and PTT Tank Terminal, with registered capital of 3.5 billion baht.
Gulf holds a 70% stake in the venture and PTT owns 30%.
Deputy Prime Minister Somkid Jatusripitak witnessed the PPP contract signing on Tuesday. The cabinet also approved the signing.
The contract entails the development of Map Ta Phut seaport's third phase. The first period for the project is worth 47.9 billion baht, under which land reclamation and phase one of the LNG terminal, with capacity of 5 million tonnes a year, will be carried out.
The IEAT expects the first period to begin operations in 2025.
The second period will see the development of the seaport's superstructure, worth 7.5 billion baht, for which the IEAT will issue terms of reference for construction starting in 2023, commencing operations in 2025 to serve LNG shipments of 4 million tonnes a year.
The Map Ta Phut deep-sea port is the first megaproject in the flagship Eastern Economic Corridor scheme to have inked a contract. There are five megaprojects in the corridor.
Mr Somkid said the extension to Map Ta Phut seaport will support the country's petroleum and petrochemical industry, which the government aspires to make a shipment hub in Southeast Asia.
"This new movement is meant to build up investor confidence and stimulate further investment flows from private operators," he said.
After the contract signing, the IEAT will require four licences from two state agencies, the Marine Department and the Energy Regulatory Commission.
Sarath Ratanavadi, Gulf's chief executive, said the joint venture requires a loan of 12-13 billion baht from commercial banks for the first period.
"The joint venture will invest 35 billion baht, and the remaining 12.9 billion baht will come from the IEAT's budget," Mr Sarath said. "Gulf expects to import roughly 20 million tonnes of LNG throughout the 30-year shipment contract."
Mr Somkid said four more EEC megaprojects are expected to have PPP contracts this year.
"The high-speed railway linking Suvarnabhumi, Don Mueang and U-tapao airports has to be signed on Oct 15," he said.
The CP Group-led consortium was the winning bidder for the 225-billion-baht high-speed railway that would run a length of 220 kilometres.