Edison International affiliate seeks new financing for Thai coal plant


Bangkok�Gulf Power Generation Co (GPG), partly owned by the US energy firm Edison International, is trying to get its delayed Bor Nok coal-fired power project in southern Thailand off the ground, in spite of opposition by local residents concerned about its potential social and environmental impact.

The US-Thai joint venture is now moving to arrange about $600 million financing to replace the previous borrowing plan that was outdated because of changing conditions. The company plans to commence negotiations with potential lenders towards the end of January or early February, targeting financial closing in the middle of 2001, said Sarath Ratanawadi, GPG managing director.

GPG, owned 60% by Bangkok-based Gulf Electric and 40% by Edison Mission Energy, an Edison International unit, now aims to begin construction of the 734 Mw facility in Prachuab Khiri Khan province "immediately" after the financial closing.

It will also seek a third extension to 2004 from 2003 for the contractual startup of electricity sales to the Electricity Generating Authority of Thailand (EGAT) under a long-term power purchase agreement. At the same time, the company will take steps to obtain various licenses required to build the power plant, Sarath said.

He suggested there is a trend toward greater acceptance from local villagers as the firm is trying to forge better understanding with them and other opponents about the benefits of the project.

"But it may be impossible to get everyone to agree," he conceded.

The cabinet approved the findings of a public hearing earlier this year on the condition a "joint committee" be established to foster local understanding of the project and resolve current conflicts. Opponents said the government is trying to head off confrontation by misleading people about Bor Nok, along with another other coal-fired power project, the 1,400 MW Hin Krut project of Union Power Development Co (UPDC), also in the province.

Both projects were strongly opposed by local residents and others who blocked the southern highway in December 1998 in protest. The government then decided to hold public hearings on the projects to end the riots.

Sarath regards an Oct. 10 resolution by the cabinet as signaling a green light for the project to proceed, while Union Power is not too sure because of vague wording of the cabinet statement.

GPG has already spent about 3.2 billion baht ($74.4 million) on the Bor Nok project, and the delays have cost it one billion baht in lost revenues, according to Sarath. He blames certain nongovernmental organizations for the delays, saying their members have refused to listen to reason and intentionally fostered conflicts and even violence instead of trying to conduct rational discussions.

Sarath reiterated the firm's offer to set up a fund to pay for any damage the Bor Nok project causes. The planned Bor Nok facility will use clean coal technology and will be fueled by sub-bituminous coal imported from Indonesia.

Jintana Kaewkao, head of Ban Krut Environmental Club, earlier warned protesters will continue their campaign against the two coal-fired power projects.

"The fight is far from over. The government is simply trying to buy time, he said."

Related Articles

Study: To cool climate, eat less less meat, milk

12/15/2014

Meeting stated goals for Earth's climate requires not only using pricey energy but also spurning animal protein.

Eagle Ford economic boost jumps to $87 billion

12/12/2014 The Texas Eagle Ford shale supported more than 155,000 full-time equivalent jobs and provided more than $2.2 billion in revenue for local governmen...

EnCana, Talisman optimist on Montney, Duvernay

12/12/2014 EnCana Corp. has achieved significant cost savings in the Montney and Duvernay plays, executives told analysts while discussing EnCana's third-quar...

EPA approves Magellan’s Corpus Christi splitter project

12/12/2014 The US Environmental Protection Agency has issued a final greenhouse gas prevention of significant deterioration construction permit to Magellan Pr...

ETP eyes larger capacity for planned Bakken pipe

12/12/2014 Energy Transfer Partners LP has launched a binding expansion open season to boost capacity on a planned pipeline system that would move oil from th...

Common interests lead to Gtuit, Corval partnership

12/12/2014

Gtuit was started 3 years ago by three engineers in Billings, Mont, who developed a mobile, remote NGL capture and gas conditioning system.

OGJ Newsletter

12/08/2014

International news for oil and gas professionals

EPA air proposals should recognize progress, API official says

12/08/2014 The US Environmental Protection Agency should recognize progress that is continuing before it considers imposing costly new air quality requirement...

Keyera to own interest in new deep-cut gas plant

12/02/2014 Keyera Corp., Calgary, will take a 35% stake with Bellatrix Exploration Ltd., Calgary, in a deep-cut natural gas processing plant and related pipel...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected