Thaioil – GPSC Closed The Deal-Selling 250 MW ERU Power Generation Unit
Worth 757 Million US Dollars, Using Residual Oil From The Refining Process.
10-5-2019–GPSC signed an agreement to purchase ERU units from Thaioil, a credit facility of US $ 757 million, to produce 250 megawatts of electricity, 175 tons of steam per hour. Enter the clean fuel project (CFP) of Thaioil to show the potential of the environmental response project.
The residue from the refining process is used for the power plant unit, in accordance with the country’s energy and innovation development plan which is expected to be commercially operational in 2023.
Today (10 May 2019) Dr. SiriChiraphongphan Minister of Energy chaired the signing ceremony of the Energy Recovery Unit (ERU) purchase agreement between Thaioil Public Company Limited and Energy Recovery Unit Company Limited, a subsidiary of Global Power Company Limited Synergy Public Company Limited (GPSC), the ERU is a part of the Clean Fuel Energy Project (CFP) of Thai Oil.
Dr. Siri said, “The development of such projects counted as a model of project development in the industrial sector that focuses on energy self-reliance by using oil waste which cannot be reused in the refining process to maximize the benefit in energy production with the use of high technology that is environmentally friendly as well as being a coordinator of organizations that specialize in the petroleum refining business and the electricity business to jointly develop the project for maximum efficiency.”
Mr. Chansin Trienuchakorn, Chief Executive Officer and President of PTT Public Company Limited, said, “PTT Public Company Limited engages in petroleum and petrochemical businesses from upstream to downstream by investing through a group of companies, in order to support the main mission of strengthening energy security and competitiveness for various countries.
Today’s cooperation is another example of creating a great synergy or synergy in the PTT group by “Thaioil”, the leading refining and petrochemical group, PTT Group and “GPSC”, the leader of the electricity business innovation group.
Thaioil has reached an agreement to sell the ERU which will result in both companies conducting core business activities and using specialized expertise to strengthen stability oil refining and electricity for the excellence of the PTT Group as well as supporting the Eastern Special Development Zone (EEC) in accordance with the Thailand 4.0 strategic plan of the government.
Mr. Atikom Terbsiri, Chief Executive Officer and President, Thaioil Public Company Limited said, “Last year The Extraordinary General Meeting of Shareholders of Thaioil has approved the investment in Clean Energy Project, with a total investment of approximately USD 4,825 million to expand the production capacity of ThaiOil’s current refinery from the refining capacity of 275,000 barrels per day to 400,000 barrels per day which will consist of the creation of several new production units, such as the 4th crude oil refining unit, the heavy oil extraction unit to be light oil by using Hydrogen or RHCU and the Energy Recovery Unit or ERU, which is the main function of electricity generation and Enough steam to meet the needs of the CFP project “
“In the preparation of the CFP project, the company has a way to provide interested parties to invest in ERU units instead of investing in building all of their own, in order to reduce the burden of investment in the CFP project and consider that GPSC is qualified to be an ERU investor because it is a leading company in the electricity business and have expertise in the operation of power generation units and have understanding of the oil refining and petrochemical business “
“The acquisition of GPSC in the ERU will cause Thaioil to reduce the investment burden in the CFP project by about 15%, resulting in the company’s financial position. Strong And increase liquidity to support other investments In addition, Thaioil is able to cooperate with GPSC to manage and control the quality of the CFP and ERU projects in terms of safety. Production stability And proceed with the Plant Optimization of the refinery as well. “
Mr. Chavalit Thippawanich, Chief Executive Officer and President of Global Power Synergy Public Company Limited, the leader of the electricity business innovation group, PTT said that the signing of the contract to purchase the ERU power plant with the company Thai Oil Public Company Limited in the purchase of ERU power generation units with a capacity of 250 megawatts of electricity, 175 tons of steam per hour.
The total investment value is US $ 757 million or approximately 24,113 million baht. It is expected that the transfer of ownership of ERU units will be made in 2023.
This time, GPSC will operate through a subsidiary that GPSC holds 100% by planning payment for Thaioil, according to the progress of the project development, during the first 4 years (2019-2022) will invest a total amount of 138 million US dollars, or 20% of the investment amount by using the working capital of the company and in 2023, the company will use a loan from a financial institution to pay for Thaioil In the remaining 80%.
Mr.Chavalit said This operation is an opportunity to increase business growth from fuels in different ways, which will further business expansion future in enhancing the experience of managing power plants with diverse fuels to remove residual oil from the refining process.Using the expertise of GPSC as the fuels expert for the electricity generation and utility business operator, which is the Power Flagship for PTT Group that is ready to drive energy security for the country.
“In order to reduce the investment burden of the CFP project, Thaioil therefore proposes to investors instead of building all of its own investment, which GPSC has been entrusted with the development of such ERU projects.
This is another important project of GPSC and Thaioil that will help raise the level of technology and energy innovation by applying the available resources to the maximum benefit and environmentally friendly that can bring the knowledge gained to further develop projects investment, both in the country and abroad that will happen again in the future, “said Chavalit.
