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Thailand's Gulf Energy seals US$927 million port deal with government

Thailand's Gulf Energy seals US$927 million port deal with government

The national flag of Thailand. (Photo: iStock/Mathias Berger)

BANGKOK: Thai power producer Gulf Energy Development on Thursday (Nov 25) said its consortium had signed a deal worth 30.9 billion baht (US$927 million) with the country's port authority for construction and operation of container terminals.

The firm, among the country's largest private power producers, is owned by Thai billionaire Sarath Ratanavadi and has been investing billions of dollars to expand its infrastructure business.

"Gulf will use accumulated experience in developing and managing large-scale infrastructure projects in Thailand and overseas to develop the port," said Gulf Energy senior executive, Ratthaphol Cheunsomchi.

Gulf Energy holds a 40 per cent stake in the consortium, called GPC, while state-owned energy firm PTT and China Harbour Engineering Company each hold 30 per cent.

The group will build and operate the two terminals in Laem Chabang port for 35 years, as part of the government's ambitious plan to drive foreign investment into its eastern seaboard.

The first terminal is expected to begin operations in 2025 and construction of the second is slated to begin in 2027. Together they will be able to handle 4 million twenty-foot equivalent units (TEU) each year, Ratthaphol said.

Gulf's traditional business is electricity and it has installed capacity of about 9.3 gigawatts, but in recent years it has been diversifying.

In 2019, Gulf and state-owned energy giant PTT began construction of a US$1.3 billion gas terminal on the country's east coast.

Earlier this year, Gulf Energy also offered US$5.4 billion to buy telco group, Intouch Holdings and eventually rose its stakes 42.3 per cent in a digital infrastructure push.

InTouch is the largest shareholder in the country’s top telco firm, Advanced Info Service and satellite operator, Thaicom.

Source: Reuters/vc

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