Thailand's Gulf Energy invests $200 mil. in Vietnam wind projects

06, Jul. 2020

Photo by Arqm Ahmd on Unsplash
Photo by Arqm Ahmd on Unsplash

BANGKOK, NNA - Thailand's Gulf International Holding Pte. Ltd. (GIH) has signed a $200 million deal to buy Dien Xanh Gai Lai Investment Energy Joint Stock Co., the developer of two wind power projects in Vietnam.

Collectively known as the Onshore Wind Farm Projects, the two are Ia Pech 1 and Ia Pech 2 in Gia Lai Province of central Vietnam. They are expected to install a total capacity of 100,000 kilowatts of electricity, which will be sold to state-backed Vietnam Electricity (EVN) for 20 years.

Gulf International, a subsidiary of Thailand’s major energy producer Gulf Energy Development Public Co., expects construction for both plants to begin in 2021 and commercial operation to start by fourth quarter of 2022, the group said in a filing to the Stock Exchange of Thailand on July 2.

The Onshore Wind Farm plants are expected to generate an annual revenue of 700 million baht ($22.48 million), Gulf Energy told NNA.

In 2018, Gulf International invested around $650 million in a joint venture with Thanh Thanh Cong Group to operate real estate and energy businesses in Vietnam.

The partners have established a solar plant and a wind plant in Ben Tre Province in the southern part of the country. Both are expected to install a total of 340,000 kw output capacity under three phases. The wind plant called Mekong Wind will sell electricity to EVN under a 20 year contract starting from next year.

“Our existing wind farm projects are currently under construction and development,” Gulf Energy told NNA. The start of Phase 1 operation for Mekong Wind Power has been postponed to May 2021 due to COVID-19 disruption.

The company expects the wind farm projects to contribute 5 percent to its revenue by 2021, said the company.

In Q1 of 2020, the company made 33 billion baht in revenues from electricity sold to Electricity Generating Authority of Thailand (EGAT) and business from Vietnam’s solar power projects, GTN1 and GTN2 . These two factors are the main contribution for 33.5 billion baht revenue not 33 billion baht alone from selling electricity to EGAT and two power projects.

Gulf Energy plans to invest in renewable businesses and LNG gas to power its main projects in Vietnam, said the company.