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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has entered into a project finance agreement for a gas-fired thermal power generation project jointly promoted with Gulf Energy Development Public Company Limited ("Gulf"), a leading private sector electric power company in Thailand. Work on the project will begin before the end of 2018. The total project cost is expected to be approximately ¥170 billion, with Mitsui taking a 30% equity participation.
The project, based on a long-term power purchase agreement with Thailand's state-owned power utility, the Electricity Generating Authority of Thailand ("EGAT"), is for the construction of a gas-fired combined cycle power plant with a generating capacity of 2,500 MW in Chonburi Province about 130 km southeast of Bangkok. The plant, comprising four units of 625 MW is slated to become gradually operational in during March 2021-October 2022, and will sell electric power over a 25-year period thereafter. Mitsui will contribute to the smooth development and operation of the project by using knowledge gained through its experience with electric power business in Japan and overseas, and by strengthening collaboration with Japanese companies and financial institutions with which it has business relationships. Construction and long-term maintenance agreements for the project have been concluded with Mitsubishi Hitachi Power Systems. While for project finance, the Japan Bank for International Cooperation, the Asian Development Bank, and a syndication of commercial banks in Japan, Thailand, and other nations will participate in the project finance.
Thai government, under its long-term development vision, Thailand 4.0, aims to accelerate investment along the Eastern Economic Corridor (EEC), which encompasses three eastern provinces, including Chonburi. This project will contribute to regional industrial development and nation development through the long-term stable provision of social infrastructure along the EEC.
The gas-fired power plant will be fueled by natural gas including imported LNG through the long-term gas sale agreement with PTT Public Company Limited. Compared with other fossil fuels, natural gas is a clean energy source with low greenhouse gas emissions, for which demand is growing globally. Mitsui is building a wide range of value chains, including competitive upstream assets, as well as mid- and downstream facilities, such as LNG onshore receiving terminals, gas pipelines, and gas-fired thermal power plants. Mitsui aims to build a robust profit base in the Machinery & Infrastructure area, which is identified as a core pillar area in its Medium-term Management Plan.
|Project Company||Gulf SRC Company Limited|
|Shareholders||Gulf (70%), Mitsui (30%)|
|Business Activities||Develop, construct, own, and operate a gas-fired power plant|
|Facilities||Gas-fired combined cycle power plant with a capacity of 2,500 MW (four units of 625 MW)|
|Purchaser of Electric Power||EGAT|
|Total Project Cost||Approx. 51 billion Thai baht (approx. ¥170 billion)|
|Scheduled Operation Dates||March 2021: First unit operational, October 2022: Completion|
|Site Location||Chonburi Province|