Gulf Energy Development Plc, Thailand's top private power producer by capacity, has acquired a 40% share of PTT Natural Gas Co, a gas distribution arm of PTT Group, at a cost of US$90 million (2.7 billion baht) to further expand its energy business.
Gulf entered into a share purchase agreement with International Power S.A. and proceeded with the transfer of shares on Wednesday.
The company reported to the Stock Exchange of Thailand yesterday the investment in PTT Natural Gas, with PTT as its major shareholder, will benefit its gas infrastructure because most of its power plants are gas-fired power generation.
After the deal, Gulf will hold a 40% share in PTT National Gas; PTT, the national oil and gas conglomerate, owns 58% and 2% belongs to CPB Equity Co Ltd, said Gulf chief financial officer and executive director Yupapin Wangviwat.
PTT National Gas was established in 1996.
It operates a natural gas distribution business by investing in distribution pipeline systems to serve over 250 industrial customers in 13 industrial areas in Bangkok and Rayong.
The latest investment is considered to be another project Gulf has jointly invested with PTT, in addition to the Map Ta Phut Industrial Port Development Phase 3 that was previously announced.
Ms Yupapin said Gulf and PTT jointly set up Gulf MTP LNG Terminal Co which won a bid for the third-phase development of Map Ta Phut deep-sea port in Rayong.
The new company is 70% owned by Gulf and 30% owned by PTT Tank Terminal, with registered capital of 3.5 billion baht.
The Industrial Estate Authority of Thailand signed a public-private partnership contract with Gulf MTP LNG Terminal Co in October last year.
Cost of development, which covers 1,000 rai of land, is estimated at 55.4 billion baht.