Gas Corporation and Seobu Power Join Hands to Build 'Thailand Gas Combined Cycle Power Plant'

Signing of Business Agreement with Local Power Company TPIPP
1.7GW-Class Large-Scale Project to Begin Construction Next Year
Responsible for Financial Procurement, LNG Facility Construction, and Operation

Planned site for the Songkla gas combined cycle power plant.

[Sejong=Asia Economy Reporter Joo Sang-don] Korea Gas Corporation and Korea Western Power will participate in the construction of related facilities such as a gas combined cycle power plant, liquefied natural gas (LNG) storage tanks, and pipelines in Thailand. This case draws attention as it involves both the power company and the raw material supplier gas corporation participating from power plant construction to operation.

On the 5th, according to Gas Corporation and Western Power, the two companies signed a memorandum of understanding (MOU) for cooperation on the Songkhla GTP (Gas to Power) project in Thailand with the local power company TPIPP.

The signing ceremony was held online via video conference to prevent the spread of COVID-19, attended by Park Young-kwon, Head of New Growth Business Division at Gas Corporation, Han Sang-moon, Head of Business Division at Western Power, and Prachai Leophairatana, Chairman of TPIPP.

This project is a large-scale project to supply LNG and construct a terminal and a 1.7GW power plant in the Songkhla region, located 750 km south of Bangkok, the capital of Thailand. Considering that the scale of large combined cycle power plants operated domestically is around 1GW, the Thai power plant project is more than 70% larger. The specific project scale will be finalized through consultations with TPIPP. It is reported that TPIPP proposed the project participation to Gas Corporation and Western Power. In 2016, the Thai government designated this area as a special economic zone, and being adjacent to Malaysia and Singapore, it is expected to grow significantly as an economic and commercial hub in the future.

Western Power and Gas Corporation will be responsible for financial procurement for construction projects, as well as the construction and operation of the power plant and LNG facilities. TPIPP will act as the lead company handling major administrative tasks such as permits and project operation. TPIPP is a subsidiary of the TPI Group, which operates petrochemical plants, manufactures and sells construction materials, and engages in energy businesses. It operates a total of 400MW capacity waste-to-energy (WTE) power plants in Thailand.

If funding proceeds smoothly, the Songkhla power plant is scheduled to begin construction next year. It will operate for 25 years after construction, and the generated electricity will be sold to the Electricity Generating Authority of Thailand (EGAT).

Gas Corporation plans to actively support securing stable new overseas LNG demand sources to create new revenue streams and enable domestic companies to enter related fields such as construction and finance together. It also plans to help establish a platform for economic revitalization and win-win cooperation.

A Gas Corporation official said, "We will focus on establishing a foothold to expand entry into the overseas emerging GTP market through the Songkhla project."

A Western Power official also stated, "We plan to expand gas combined cycle power projects in the Southeast Asia region," adding, "We will create a win-win export business model by entering together with domestic financial institutions and domestic equipment companies."

Western Power is currently focusing its power business development capabilities by making Southeast Asia a strategic base for overseas business. In particular, based on experience in constructing and operating the Nam Ngum Noi hydropower plant in Laos, it is expanding its business areas to neighboring countries such as Myanmar, Indonesia, and Vietnam.

This content was produced with the assistance of AI translation services.