The natural gas plant will replace an existing 824-MW plant that will be phased out in 2016, according to president Sahust Pratuknukul. Construction is set to begin in mid-2013 and finish by mid-2016.
The company expects the Khanom power plant to make a profit of at least 500 million baht a year once operational.
Mr Sahust said the company foresees better profitability this year thanks to expansion and a new investment plan.
Egco Group Plc is doubling this year’s investment budget to 20 billion baht to accommodate vibrant merger and acquisition activity. The group recorded a 2011 net profit of 4.99 billion baht.
The company anticipates closing an acquisition of an Indonesian coal mine with 100 million tonnes of capacity in the next two months.
Egco also expects to realise revenue and profit in the third quarter from Quezon Power Project Ltd (QPL), a Filipino company in which it recently acquired an additional 45.88% stake, giving it full control over a power plant in the Philippines.
In a related development, the company yesterday signed a loan agreement worth 2.46 billion baht with three banks.
The funding will be used for investment in three solar farms tapped to become Thailand’s first privately owned projects with sun-tracking systems.
The three projects are SPP2 and SPP3 in Saraburi and SPP4 on the border of Si Sa Ket and Ubon Ratchathani provinces.
SPP2 and SPP3 have an installed capacity of eight megawatts each. SPP4 has an installed capacity of six MW.
EGCO shares on the Stock Exchange of Thailand closed yesterday at 105 baht, down 2.50 baht, in trade worth 62.05 million baht.
Source: http://www.bangkokpost.com/business/economics/297648/egco-building-huge-new-plant-in-south
