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Mitsui invests in gas-fired power plant in Thailand

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LNG Industry,

Mitsui & Co. has announced that it has given the go-ahead for a major new US$1.6 billion project to build a gas-fired combined cycle power plant in Rayong Province, Thailand.

According to the statement, the go-ahead follows the signing of a project financing agreement for the 2500 MW plant, which will be built, owned and operated by a joint venture (JV) between Mitsui (30%) and major Thai private power company Gulf Energy Development Co. Ltd (70%).

Construction will begin in July 2020, and the new plant is expected to start supplying electricity in 2023 under a 25-year long-term contract with the Electricity Generating Authority of Thailand. The feedstock for the plant will come from both domestic natural gas and imported LNG.

According to the statement, the Japan Bank for International Cooperation (JBIC) is providing project financing for approximately US$208 million. Mitsui & Co. claims that the loan is co-financed by the Asian Development Bank (ADB), Export-Import Bank of Thailand (EXIM Thailand), Mizuho Bank Ltd, Sumitomo Mitsui Banking Corp., Sumitomo Mitsui Trust Bank Ltd, DZ Bank, Oversea-Chinese Banking Corp. Ltd, and regional banks in Thailand covering approximately US$1.36 billion.

Yoshio Kometani, Executive Managing Officer of Mitsui & Co., said: “We are pleased to support Thailand in answering its growing needs for electricity, together with Gulf Energy. Along with our partners JBIC and other Japanese companies, we aim to continue contributing to the development of the country's infrastructure.”

Reiji Fujita, President of Mitsui & Co. (Thailand) Ltd, added: “Sustainability is a key growth area for Mitsui and this latest major long-term investment supports Thailand’s transition to harnessing cleaner energy sources. It is also in line with our strategy to grow our natural gas business as the greener fossil fuel and bridge to renewable energy.”

According to the statement, this will be the fourth major project to be developed jointly by Mitsui and Gulf in Thailand. The partners are also constructing a similar 2500 MW gas-fired power plant in Chonburi Province, and operate a small scale power plant, involving a combined capacity of 6470 MW.

In addition to this, Mitsui also partners with Gulf on a natural gas distribution network to industrial estates in Thailand.

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