signs MoU with EGCOMP

Bangchak Petroleum Plc (BCP) reported that the company will sign a Memorandum of Understanding (MoU) with Electricity Generating Plc (EGCOMP) on October 11, 1995. The two parties will invest Bt1.7 billion to set up a joint venture to supply electricity to Electricity Generating Authority of Thailand (EGAT). BCP and EGCOMP will each hold a 50% stake of the new company's registered capital in the initial stage. BCP will seek the third investment partner within six months. BCP's shareholding ratio will be dropped to 40% while EGCOMP will hold 30% and the third major shareholder will hold the rest of 30%. The joint venture will invest Bt1.7 billion in the construction of a 70-megawatt power plant which will follow up on the production process at Bangchak. The new power plant will apply the cogeneration, a technique of production considered to be the cleanest and the best in term of efficiency. The electricity generating unit will use combined circle from gas turbine and steam turbine in its production. The electricity generated from the plant will be supplied to EGAT's system under the Small Power Producers scheme (SPP). Part of the electricity and steam produced will be sold to BCP for use in its oil refinery. This will generate an annual revenue of about Bt700 million for the joint venture. After the signing of the MoU and approval from EGAT, the construction designing will start and construction is expected to commence in the middle of next year. The project is expected to be completed and become operational in early 1998. BCP is expected to select the third joint venture partner from among the companies which had already joined the bidding under the IPP scheme. After the joint venture commences its operations, BCP will sell Bt350 million worth of off gas a year from its its refinery to the joint venture company. Translated by The Nation