Gulf signs contracts for LNG
SET-listed Gulf Energy Development Plc is keen to be a shipper of liquefied natural gas (LNG) for Thailand and Vietnam after the company signed contracts to develop megaprojects in both countries.
Chief executive Sarath Ratanavadi said Gulf formed Gulf MTP LNG Terminal Co with PTT Tank Terminal, with registered capital of 3.5 billion baht, to develop the third phase of Map Ta Phut seaport, worth 55.4 billion baht, on 1,000 rai.
The Industrial Estate Authority of Thailand signed a public-private partnership contract with Gulf MTP LNG Terminal in early October as the joint venture company won the bid for Map Ta Phut port.
Gulf holds a 70% stake in the venture and PTT owns 30%.
"We are waiting for a final decision to grant an operating licence from the Energy Regulatory Commission," he said.
Mr Sarath said Gulf signed a cooperation agreement with the Vietnam government in early November for a gas-fired power project and LNG terminal in Ninh Thuan province.
Gulf submitted a proposal to the Vietnam government for the development of a power project with generation capacity of 6,000 megawatts along with an LNG terminal with a capacity of 6 million tonnes per year.
In related news, Gulf was approved for 41 billion baht in loans from 16 domestic and international financial firms to develop the gas-fired power plant at Rojana Rayong 2 Industrial Park in Rayong, with installed capacity of 2,650MW.
This project will be developed through Gulf PD Co, a joint venture between Gulf with a 70% stake and Mitsui & Co with a 30% stake.
Gulf PD has two licences under the government's independent power producer (IPP) scheme. Gulf won the auctions in 2013 for a total capacity of 5,300MW.
Of the 41 billion baht, the Asian Development Bank (ADB) is providing $180 million in loans (5.44 billion baht).
ADB's support includes a regular loan of $50 million and a B loan of up to $85 million. ADB will also mobilise $45 million through the Leading Asia's Private Infrastructure Fund, established in 2016 and supported by the Japan International Cooperation Agency.
Christopher Thieme, ADB's deputy director-general for private sector operations, said the bank signed the loan agreement with its co-financiers to be the anchor lender in the project by catalysing up to $764 million in commercial co-financing.
The B loan will be funded by Singapore's Oversea-Chinese Banking Corporation and Germany's DZ Bank, said Mr Thieme.
"The project will build the fourth largest power plant and one of the largest combined cycle gas turbine power plants in Thailand, which will be key to development of the Eastern Economic Corridor, considered the prime driver of economic growth for the country until 2028," he said.
For Gulf's other IPP project, Gulf signed a loan for the same amount and capacity last November. This project is being developed by Gulf SRC Co with a licence for 2,650MW in Sri Racha. It is 39% complete. The two IPPs are expected to begin in 2023-2024.