Mitsui & Co and Gulf Energy sign JV to develop gas fired power projects in Thailand

Mitsui & Co., Ltd. has signed agreements with Gulf Energy Development Company Limited (GED) to promote twelve gas fired cogeneration power projects in Thailand.

Mitsui, through a special purpose company it newly established as an investment vehicle, will acquire 30% of the shares of the holding company it established with GED to own the twelve project companies.

The aim of the projects is to build, own and operate twelve gas fired cogeneration power plants with a total capacity of 1,470 MW (120 MW x 9 projects, 130 MW x 3 projects) at respective sites located in several industrial estates in Thailand.

In accordance with Thailand's small power producer (SPP) program, each project company will sell electricity to the Electricity Generating Authority of Thailand (EGAT) for a term of 25 years and further sell excess electricity and steam to industrial users around the site.

The total project cost is expected to be approximately US$2.4 billion.

The project companies individually entered into a construction contract with Toyo Engineering Corporation and a supply contract with one of its subsidiaries and a project finance agreement with several commercial banks in Thailand, Japan and Malaysia on November 28.

Construction is to commence sequentially, and the first plant is expected to achieve commercial operation in May 2017 and the last project in July 2019.

Mitsui will contribute to the development and operation of the projects by leveraging expertise (engineering, procurement and construction) for power plants and independent power producer (IPP) business. The project will, through stable supply of electricity and steam, contribute to the economic development of Thailand.