EGAT to replace decommissioned oil-fired power plant in Surat Thani with gas-fired power plant

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EGAT to replace decommissioned oil-fired power plant in Surat Thani with gas-fired power plant

Thailand’s state-run Electricity Generating Authority of Thailand (Egat) said it plans to accelerate the development of a new alternative gas-fired power plant to replace the existing oil-fired power plant in Surat Thani, which was abandoned after it was decommissioned a decade ago.

The new power plant is set to hold two units with a capacity of 700 megawatts each.

A natural gas pipeline is also projected to be extended from an existing gas-fired power plant in Nakhon Si Thammarat’s Khanom district, owned by its SET-listed subsidiary Electricity Generating Plc.

Patana Sangsriroujana, deputy governor for policy and planning at Egat, said the initial completion and operation date of this project was set for 2027 and 2028 previously, but Egat bumped it up to 2025 and 2026.

The schedule was reset because Egat estimated the power supply in the South may be insufficient after 2025 because of the rapid growth of the tourism sector.

The new power generation unit in Surat Thani has an estimated development cost of 70 billion baht and Egat is proceeding with the environmental impact assessment report.

This new power plant will add to the electricity supply in the South, which includes the Khanom power plant, Chana power plant and Ratchaprapha hydropower plant.

Egat chairman Kulit Sombatsiri said the company plans to spin off its power trade business unit to facilitate the business as energy policymakers plan to make the country a trading centre for Asean.

The board is scheduled to consider the plan to spin off trading for the liquefied natural gas business unit to facilitate business operations on Monday.