SET-listed B.Grimm Power Plc (BGRIM) plans to start importing liquefied natural gas (LNG) next year, bringing competition to the Thai gas market, which should eventually lead to cheaper gas for power plants.
LNG imports have been monopolised by the national oil and gas conglomerate PTT Plc since 2011. The Electricity Generating Authority of Thailand (Egat) entered the market after being granted a shipping licence in 2019.
The Energy Regulatory Commission (ERC) later granted licences to six other firms — BGRIM, Electricity Generating Co, Gulf Energy Development Plc, Hinkong Co, PTT Global LNG Co, and Siam Cement Group — in line with the government’s aim to open up the LNG market.
BGRIM’s wholly owned subsidiary B.Grimm LNG has been allocated an import quota of 1.2 million tonnes per year by the regulator.
Siriwong Borvornboonrutai, vice-president for finance and accounting at BGRIM, did not reveal how much the company plans to import next year, saying only that the gas would be supplied to 18 power plants. Five of the buyers are power plant operators whose gas purchase contracts with PTT have expired, while the other 13 are new plants.
The ERC is preparing to push ahead with the second-phase development of the Thai gas market by having all LNG shippers sell gas under a pool system, said Ms Siriwong. The commission is expected to set up a transmission operator system to manage gas transport later this year.
In the power business, BGRIM is continuing with its plan to spend 400 billion baht to increase its electricity generation capacity to 10 gigawatts by 2030, up from 3.7GW as of the end of last month. Part of the budget worth 70 billion baht will come from cash and profit, while the rest will come from fundraising, debenture issuance and loans, she said.
Additional capacity of 632 megawatts in 2023 will come from BGRIM’s power plants, as well as its acquisition of two solar farms in Malaysia and another in South Korea, said Ms Siriwong.
BGRIM posted revenue of 14.9 billion baht in the second quarter of this year and net profit increased by 81% year-on-year to 1.13 billion, mainly attributed to a fall in imported LNG prices. In the first half of 2023, revenue was 30.6 billion baht, with net profit soaring 487% year-on-year to 1.87 billion.