Thailand’s Gulf Energy Development to buy Vietnamese onshore wind farms

Construction News Vietnam

Thailand’s Gulf Energy Development to buy Vietnamese onshore wind farms

Firm negotiated US$200m deal for two projects via video conferencing, drone inspections

Gulf says it will purchase onshore wind farms in Vietnam with a total capacity of 100 megawatts.

SET-listed Gulf Energy Development Plc announced yesterday that it would purchase wind farms in Vietnam worth roughly US$200 million to take advantage of low interest rates as the firm seeks projects with a quick return on investment.

The company reported to the Stock Exchange of Thailand that it entered into a share purchase agreement with Dien Xanh Gia Lai Investment Energy Joint Stock Co (DGI), the developer and operator of two onshore wind farm projects, Ia Pech 1 and Ia Pech 2, each with a capacity of 50 megawatts.

The projects, located in Ia Grai district of Gia Lai province, will be held by wholly owned Gulf International Holding Pte (GIH) with a licence to develop and operate the wind farms.

Yupapin Wangviwat, Gulf’s executive director and chief financial officer, said the projects will generate and sell power to Vietnam Electricity for 20 years. They are expected to start up in 2021.

Gulf chief executive Sarath Ratanavadi said low interest rates have made asset acquisition attractive. Gulf is looking at several more renewable energy projects to acquire in Asia and Europe.

The company plans 40 billion baht in capital spending, excluding asset acquisitions.

“We’re looking for operative assets because they will quickly pay back investment returns, and at least one other asset acquisition will be announced this year,” Mr Sarath said.

He said the company was able to conduct negotiations on the wind farm deal during the lockdown through video conferencing and by flying drones over the project site.

Meanwhile, Gulf plans to import its first LNG cargo of 65,000 tonnes by year-end to fuel gas-fired power plants after receiving a licence in May to operate LNG shipping through wholly owned Gulf LNG Co.