Mitsui Proceeds With Thai CCGT

Japan’s Mitsui has entered into a project finance agreement for a 2.5 GW gas-fired combined cycle plant (CCGT) project jointly promoted with Thailand’s Gulf Energy Development Public Company, it said November 9.

Work on the project, to be located in Chonburi Province about 130 km southeast of Bangkok, will begin before the end of 2018 is expected to cost approximately yen 170bn ($1.5bn), with Mitsui taking a 30% equity participation. The project is based on a long-term power purchase agreement with Thailand's state-owned power utility, the Electricity Generating Authority of Thailand. The plant will be fuelled by natural gas including imported LNG through the long-term gas sale agreement with state-owned PTT.

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. Construction and long-term maintenance agreements for the project have been concluded with Mitsubishi Hitachi Power Systems. 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.

The Thai government is looking 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, Mitsui said.