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Thai power producers to develop Vietnamese LNG projects
THAILAND
THAI power producers B.Grimm Power and Gulf Energy Development have signed agree- ments with Vietnam to develop liquefied natural gas (LNG) fuelled power projects in the South- East Asian country.
Small-scale power producer B.Grimm agreed on November 2 to study and develop a 3,000- MW LNG-fired thermal power plant (TPP) with state-owned Petrovietnam Power, using an existing 1,500-MW TPP in Ca Mau Province as the project’s base.
“If the study finds that LNG is viable, this power plant will double power generation by another 1,500 MW in the second phase,” The Bangkok Post quoted B.Grimm president Preey- anart Soontornwata as saying. “The project will depend on the feasibility study, scheduled to be completed next May.”
Noting that several LNG suppliers had approached B.Grimm offering gas prices lower than PTT, Soontornwata added: “The LNG market has more potential in the future as new supply enters worldwide, so we are not worried about an interruption in supply.”
B.Grimm’s board of directors is scheduled to approve the deal in early 2020.
Thailand’s third-largest power utility Gulf Energy, meanwhile, signed an agreement with the Ninh Thuan Provincial People’s Committee to develop a gas-fired TPP and LNG terminal in the province on November 2. The company said
it would locate facilities in the province’s Ca Na subdistrict and Thuan Nam district.
Gulf Energy has previously proposed devel- oping a 6,000-MW TPP and 6mn tonne per year (tpy) LNG import terminal in Vietnam.
Gulf Energy’s executive director, Yupapin Wangviwat, said: “The Vietnam government issued a letter to support Gulf ’s investment there by jointly working with state agencies at provin- cial and national levels. Both parties agreed to extend their co-operation to exchange studies, expertise and know-how in gas-fired power plants, an LNG terminal and financing capacities for the development of the integrated LNG-to- power project.”
Thai power producers are looking for LNG opportunities in neighbouring countries owing to the slow pace of reform at home. Thai law- makers have been talking about liberalising the local LNG market, which is dominated by state- owned PTT, for years.
However, Bangkok has only approved state- run Electricity Generating Authority of Thailand (EGAT) to begin importing the fuel and, even then, has forced the utility to suspend its plans to sign a long-term supply deal with Malaysia’s state-owned Petronas.
B.Grimm’s Soontornwata said the company was mulling whether to extend its gas sup- ply contracts with PTT or hold out for market reforms.
Week 45 13•November•2019 w w w . N E W S B A S E . c o m P7
