UPDATE1: Mitsui, Gulf Energy to build gas-fired power plant in Thailand

13, Nov. 2018

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BANGKOK, NNA – Mitsui & Co., Ltd. will join Gulf Energy Development Public Co. to build a gas-fired power plant in Thailand, supplying electricity to large-scale economic development areas for high-tech industries east of Bangkok.

The two firms will invest a total of 170 billion yen ($1.5 billion) on construction of the 2,500-megawatt plant in Chonburi Province, which will begin before the yearend. Mitsui will hold a 30 percent stake in the project.

Thailand is trying to expand the scope of its industries from autos and chemicals to medical equipment, aircraft and robotics in its “Eastern Economic Corridor” located in three provinces, Chachoengsao, Chonburi and Rayong.

Gulf SRC Co., the joint venture, will start running the plant in March 2021, moving to full operation in October 2022 to serve the Electricity Generating Authority of Thailand for 25 years.

The joint venture has a long-term construction and maintenance contract with Mitsubishi Hitachi Power Systems Ltd., a Japanese power plant engineering firm.

The project is backed by a $1.3 billion loan syndicated among 12 banks, including the Asian Development Bank and the government-backed Japan Bank for International Cooperation, which says the plant will contribute to stable electricity supply for Japanese affiliates operating in the Southeast Asian country.

Electricity demand in Thailand is forecast to grow an average 3.9 percent annually through 2036, according to the Ministry of Energy’s Thailand Power Development Plan 2015-2036.