BCPG announces capital expenditure at B39bn for expansion

BCPG announces capital expenditure at B39bn for expansion

SET-listed BCPG Plc, a power generation flagship of Bangchak Corporation, announces capital expenditures for this year at 39 billion baht for business expansion. (Photo: BPCG)
SET-listed BCPG Plc, a power generation flagship of Bangchak Corporation, announces capital expenditures for this year at 39 billion baht for business expansion. (Photo: BPCG)

SET-listed BCPG Plc, a power generation flagship of Bangchak Corporation, announced capital expenditures for this year at 39 billion baht for business expansion in domestic market and overseas.

Niwat Adirek, president and chief executive of BCPG said 77% of the total capital expenditure was planned to spend for the new project development and the rest of 23% was planned for asset acquisition.

One of the business chances that BCPG foresees is the impact of bank-run situations in the USA and Switzerland which may deteriorate the corporation's liquidity.

"We are ready to acquire the assets whose owners are running dry of cash, and we prepare 20 billion baht to pay for this year," said Mr Niwat.

BCPG started its business footprint in the USA by acquiring two natural gas-fired power plants: 8.7% in the 700-MW Carroll County Energy LLC (CCE) and 7.6% in the 1,182-MW South Field Energy LLC in February worth US$115 million (3.97 billion baht).

This transaction will contribute an additional 151 MW owned to BCPG’s portfolio.

Another business potential is the domestic market which Thai energy authorities are planning to enlarge power generation from renewable resources to 50% from 12% at the end of last year over the next 2 decades.

BCPG also has a business footprint in China, Japan, Laos, the Philippines and Taiwan.

This year, it plans to carry on the development of an on-pipeline development project in Japan's Chiba 2 solar power farm at 10 megawatts and to operate next year.

The Nam San 3A and Nam San 3B hydroelectric power plants at 114 MW which already supply partial capacity to Laos state grid and are expected to supply power to Vietnam state grid next week.

In Laos, BCPG will also start the construction of the first phase of the 600-MW Monsoon Wind Power project which it obtained a $692.55-million project financing loan from Asia Development Bank (ADB) recently and to operate in 2025.

In the Philippines, the company will start the development of the 13.2-MW Nabas 2 wind farm soon on Vasai Island and operate in 2025.

Mr Niwat said BCPG is also planning to build a production facility of the battery business for households, medium-scale industry, and electric motorcycles by partnering with Xiamen Ampace Technology Co (Ampace) in Thailand.

Investment in battery business for stationary and mobility segments with Ampace aims to tap into the rising demand in the future.

Ampace is a joint venture between a Hong Kong-based Amperex Technology (ATL) and Contemporary Amperex Technology Co (CATL).

The investment details would be unveiled after the feasibility study and final investment decision were completed.

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