The Industrial Estate Authority of Thailand (IEAT) plans to conduct a joint study on a gas and renewable fuel-fired power generation facility in Songkhla to relieve concerns over insufficient electricity among factories in the South.
The study, scheduled to be completed in 2023, is to focus on power supply for the Southern Region Industrial Estate in Songkhla, according to a memorandum of understanding jointly signed by the IEAT, Global Power Synergy Plc (GPSC) and Trans Thai-Malaysia (Thailand) Co (TTM), all of which will participate in the study.
The new plant would serve the industrial estate, which houses 34 factories on 2,261 rai of land.
"The power plant will secure power supply in the region and raise investor confidence," said Veeris Ammarapala, governor of the IEAT.
His agency aims to transform the southern region into a centre of rubber manufacturing for a wide range of applications. This could help Thai farmers add value to their products and increase their competitiveness in the future, said Mr Veeris.
The IEAT plans to help the study team with information, including short- and long-term demand for electricity.
Rosaya Teinwan, executive vice-president for business development at GPSC, said the Southern Region Industrial Estate is located in an area suitable for new power plant development as fuel sources such as biomass and natural gas are easily accessible. The gas is currently transported through a network of gas pipelines operated by TTM.
Easy access to fuels should help the power plant meet its goal of supplying electricity to industrial operators.
Komgrit Lohpetch, president and chief executive of TTM, said his company can help facilitate the transport of gas.
TTM provides gas pipeline and gas separation services in the Malaysia-Thailand Joint Development Area.
Gas in the area is transported on land to a gas separation plant in the Chana district in Songkhla via a network of pipelines, passing through five districts in the province.