Talks on to finalise new LNG shippers for Ratchaburi power plant
Hin Kong Power Holding (HKH), the winner of the Hin Kong Power Plant project in Ratchaburi province, is in the process of sourcing liquefied national gas (LNG) to fuel the power plant, a source from the Electricity Generating Authority of Thailand (Egat) said.
The power plant will have the capacity to generate 1,400 megawatts per year.
HKH is a joint venture between Ratch Group Pcl (51 per cent shareholding) and Gulf Energy Development Plc (49 per cent).
“HKH is awaiting approval from the Ministry of Energy which will meet with the Energy Policy and Planning Office this month to source new LNG shippers, besides PTT and Egat,” it said. “Once the new shippers are approved, HKH will be importing LNG at 1.4 million tonnes per year.”
The source added that HKH is aware of the risk in sourcing LNG under non-pool gas system in case the government adjusts the formula in gas price calculation, and that it has prepared measures to manage the potential risks.
“If HKH does not sign a GSA [gas supply agreement] with PTT under the PPA [power purchase agreement] conditions that are based on a pool gas system, they could import LNG at a lower price,” said the source. “If that is the case, Egat may consider reducing the cost of electricity generation for the benefit of electricity users nationwide.”