RATCH Group PCL. (SET: RATCH) and Gulf Energy Development Plc. (SET: GULF) have successfully imported the first cargo of 62,000 tons of liquefied natural gas (LNG) through Hinkong Power Holding Company Ltd (HKH) to supply the 700-MW Hin Kong Power Plant, Unit 1, which is scheduled to commence commercial operation on March 1. This groundbreaking initiative by HKH demonstrates the private sector’s commitment to adhere to the deregulation of Thailand’s gas market policy. This milestone paves the way for increased competition and minimizes risks associated with gas procurement, ultimately enhancing energy security and fostering the country’s economic growth.
In accordance with the National Energy Policy Council’s (NEPC) guidelines to encourage competition in the natural gas sector and complying with the Energy Regulatory Commission’s (ERC) requirements for shipper license applications, Hin Kong Power Holding Company Limited (HKH), a joint venture in which RATCH owns 51% of shares and GULF holds 49%, has been one of eight companies to be awarded a shipper license. This license allows for the operation of a gas procurement business and the wholesale of natural gas via the LNG import market, with an allocated quota of 1.4 million tons per annum (MTPA).
Miss Choosri Kietkajornkul, Chief Executive Officer, RATCH, stated, “The Hin Kong Power Plant Project in Ratchaburi province plays a vital role in electricity generation, enhancing power security for the power system in the western region. The project, under a Power Purchase Agreement (PPA), features two combined cycle power plants with a total capacity of 1,400 MW, utilizing natural gas as the primary fuel source. Hin Kong Power Holding Company Limited ensures the procurement of LNG fuel at quality and reasonable costs. Additionally, the company also oversees and manages the delivery of natural gas to the Hin Kong Power Plant in line with the production schedule. Today’s first LNG shipment signifies a pivotal moment for HKH, marking the beginning of the private power producer venturing into the upstream business value chain of natural gas supply and honing its operational focus on fuel management. This is crucial for the efficiency and stability of the electricity production process and enable reliable electricity generation, which will be supplied to Electricity Generation Authority of Thailand (EGAT) under the 25-year power purchase agreement.”
Mrs. Porntipa Chinvetkitvanit, Deputy Chief Executive Officer, GULF, stated, “Hin Kong Power Holding Company Limited has taken a bold step forward by becoming the first private company in Thailand to import an LNG cargo. This milestone aligns with the government’s policy to deregulate the gas market, benefitting the country’s electricity production costs, creating more options for gas users, and positively impacting the overall economy and industrial sector. In 2024, HKH plans to import approximately 0.64 million tons of LNG to fuel the Hin Kong Power Plant, enabling the company to efficiently manage electricity production costs.”
“Looking ahead, GULF plans to import approximately 7.8 MTPA of LNG to fuel its Independent Power Producer (IPP) power plants, the Gulf Pluak Daeng (GPD) and Gulf Sriracha (GSRC), as well as supply 19 Small Power Producer’s (SPP) industrial customers, and PTT Natural Gas Distribution Co., Ltd. (PTT NGD). Additionally, GULF will utilize the LNG at its under-development LNG Terminal located at Map Ta Phut Industrial Port Phase 3 in the Eastern Economic Corridor (EEC), further expanding access to LNG for the region.” Mrs. Porntipa added.
Mr. Thanapong Chiemanukulkit, Managing Director, HKH, said that HKH is ready to procure fuel sources by importing LNG, ensuring quality and adequate supply to meet the fuel demand, with the aim to supporting steady and efficient electricity generation at the Hin Kong Power Plant. HKH has entered into a 3-year LNG Supply Agreement with Gunvor Singapore Pte. Ltd. (Gunvor), a subsidiary of Gunvor Group Ltd., which guarantees the supply and import of approximately 0.5 million tons of LNG annually by Gunvor to fuel the Hin Kong Power Plant Project. HKH will utilize the facilities of PTT LNG Company Limited’s LNG Map Ta Phut Terminal 2 (LMPT 2) for the conversion of LNG from liquid into gas, before it is transferred to PTT’s gas pipeline system to supply the Hin Kong Power Plant.
