Thailand: Call on Krabi coal plant due in November

Thailand: Call on Krabi coal plant due in November

The government and related authorities, such as the Electricity Generating
Authority of Thailand (Egat), are expected to make a final decision on
developing a coal-fired power plant in Krabi by November, says Energy
Minister Anantaporn Kanjanarat.

The project is one of two coal-fired power plants the government plans to
develop in the southern region to serve rising demand for power amid
economic growth. The two plants have been delayed since mid-2014.

Gen Anantaporn said the public hearing process is expected to be completed
this month and the Energy Ministry, related policymakers and the prime
minister will make a final decision by November.

The 800-megawatt coal-fired power plant was previously planned to begin
development in 2015 and start operations within 2019.

In August, Egat opened bidding to seek an appropriate construction firm, and
saw bidding prices submitted in the range of 32-34.9 billion baht.

The bidding process and the environmental and health impact assessment
report were completed simultaneously, Gen Anantaporn said.

"After being delayed for almost two years, this November will be the time to
decide whether to proceed or scrap the plan," he said.

Development of coal-fired power plants is a part of the country's plan to
diversify the power-generating system away from gas.

Gas comprises 70% of the power-generating system and the plan would see it
drop to 45-50% by increasing the proportion of coal-generated power.

With the plan being strongly opposed by the public and activists for two
decades, the plan has not proceeded.

Egat is also conducting an environmental and health impact assessment for a
coal-fired power plant in Songkhla's Thepha district, with a capacity of
1,000MW. The project will open for bidding early next year, Gen Anantaporn
said.

Yesterday, energy policymakers announced that Egat will be allowed to become
an operator of natural gas (LNG) after the implementation of a plan to
liberalise the LNG industry in Thailand, which started in the middle of this
year.

Gen Anantaporn said Egat would be approached by energy policymakers when it
begins developing LNG facilities to provide gas to the South Bangkok Power
Plant.

The National Energy Policy Council last month approved Egat's plan to enter
the LNG market by developing a floating storage re-gasification unit with an
annual capacity of 5 million tonnes.

Egat is expected to become a major player in the market after PTT Plc, the
national oil and gas conglomerate, formerly the sole LNG operator since
2011. PTT can store up to 10 million tonnes of gas a year via its receiving
terminal in Rayong's Map Ta Phut.

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Ref:
http://www.bangkokpost.com/business/news/1101873/call-on-krabi-coal-plant-du
e-in-november

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com