Thailand’s Gulf Energy gets first LNG shipper license as private firm
BANGKOK, NNA - Major Thai power producer Gulf Energy Development Public Co. and its affiliate have obtained the first liquefied natural gas shipper license in the private sector.
The group expects it could reduce the total cost of handling its annual 1.7 million tons of LNG to supply to gas-fired power generation projects in the country, leading to lower prices of electricity, it said last week.
Gulf Energy got the approval from the Energy Regulatory Commission, the country’s energy policy authority, for 300,000 tons of LNG per year to provide to 19 small power producers’ projects in a bid to reduce production costs for industrial users, it said in a statement last Thursday.
Hin Kong Power Holding Co, in which Gulf Energy holds a 49 percent stake, also got such a license for 1.4 million tons of LNG to be used for its Hin Kong Power Project in Ratchaburi Province, west of Bangkok, Gulf Energy said.
In early January, Gulf Energy purchased the shares in Hin Kong for 1.96 million baht ($61,200) from Ratch Group Public Co., its parent firm, to join hands to develop and operate Hin Kong Power Project more efficiently, it said.
The two electricity generation projects, each of which has an output capacity of 700,000 kilowatts, are scheduled to commence operations in 2024 and 2025, respectively.
The Gulf Energy group’s power plants source gas from the gas separation plant of Thai state-backed oil firm PTT Public Co. Small power producers provide electricity to the state grid, according to a Bangkok Post report.
Gulf Energy also invested around 121 million baht in mid-January in Burapa Power Holding Co., a subsidiary of National Power Supply Public Co., and acquired its 35 percent stake to develop and operate Burapa Power Project with a capacity of 540,000 kw in Chachoengsao Province, east of the capital.
The partnership is in line with the National Energy Policy of the second-largest economy in Southeast Asia to help the project produce electricity at low cost and operate more efficiently, Gulf Energy said.
Burapa Power Project is a combined-cycle power plant that uses natural gas as fuel. In the second half of 2019, the operator signed an electricity supply agreement with PTT for 25 years, while Hin Kong Power sealed a power purchase agreement with the Electricity Generating Authority of Thailand for 25 years, according to Gulf Energy Development.