Japan’s Mitsui & Co, Ltd has signed agreements with Gulf Energy Development Company Ltd (GED) to promote 12 gas-fired cogeneration power projects in Thailand with a total combined capacity of 1470 MW. The projects include nine 120 MW installations and three 130 MW plants.
Located in several industrial estates in Thailand, in accordance with Thailand’s small power producer programme each project company will sell electricity to the Electricity Generating Authority of Thailand (EGAT) for 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.
Mitsui, through a special purpose company, will acquire 30% of the shares of the holding company it established with GED to own the 12 project companies which have 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. 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.