SET Announcements
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