Thai utility signs accord with Provincial Electricity Authority in LNG import zone

Tuesday, 13 October 2020
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LNG Journal editor: 

Thai utility operator, B.Grimm Power Public Company, said it signed an accord with the Provincial Electricity Authority and its subsidiary on technical and financial cooperation in and around Map Ta Phut in Rayong province, the location of the southeast Asian nation’s LNG import terminal where two expansions are planned.

“The aims include broadening the service area by Small Power Producer (SPP) projects to serve a larger number of potential industrial users,” said a statement from B.Grimm Power President Preeyanart Soontornwata.

Established

B.Grimm Power recently became the third independent Thai company to receive an LNG import licence as the sector is liberalizes.

The company was awarded its licences by the Thai Energy Regulatory Commission for imported gas deliveries to its five existing gas-fired power plants.

The Thai B. Grimm Group has been operating in the country since 1878 and the LNG licence was first applied for by the B. Grimm Power subsidiary in 2016.

B.Grimm Power told the Thai stock exchange that it had signed a memorandum of understanding for jointly expanding operations with the Provincial Electricity Authority and its unit PEA Ecom International Co., which would now hold a 5 percent shareholding in B.Grimm Power’s regional operator.

PEA Encom’s 5 percent stake is in B-Grimm Power’s Map Ta Phut operational company B.Grimm Power (MTP) Limited and was acquired by PEA Ecom for a sum of 200M baht ($6.3M).

B.Grimm Power and PEA Encom would seek to increase the efficiency of the private sector in the direct supply to end users in the Independent Power Supply (IPS) system and in renewable energy project expansion and opportunities in the Microgrid and Smartgrid areas.

“This cooperation is also expected to provide the potential cost saving in future investment in transmission lines and other facilities with a total value of no less than 1 billion Thai Baht ($32 million), including the initial cost saving of 315M Baht ($10M) for B.Grimm Power, together with the enhancement in both customer coverage and service efficiency,” stated President Preeyanart.

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