Bo Nok plan bows to pressure,
agrees to use gas, relocate site
Bangkok Post, Thursday, May 15, 2003
New location to be decided in 2 months
By: Busrin Treerapongpichit
Gulf Electric Plc, developer of the 734-megawatt Bo Nok power plant in Prachuap Khiri Khan, decided yesterday to use natural gas instead of imported coal to run the project, said president Sarat Rattanawade.
As well, the project site is expected to be moved to a new location to be decided within one or two months.
"We are considering seven choices for the possible move but additional details can't be disclosed yet," he said.
Changes of the project's fuel type and the relocation have been proposed by the Electricity Generating Authority of Thailand (Egat) to calm protests by residents over environment concerns, which have delayed the project for years.
"We discussed the issue with PTT [Plc], which agreed to support our gas turbine project by providing links to its gas pipeline for the project," he said.
Mr. Sarat said the factors that would be taken into consideration in choosing the new site included access to electricity transmission lines, natural gas pipelines and water resources, as well as acceptance by residents in the area.
He said the construction cost of a power plant fuelled by natural gas would be 12 billion baht, 20 billion baht lower than for a coal-fired power plant of equivalent capacity. However, the generating cost would be more due to higher gas prices.
Mr. Sarat said that despite the fuel change, the company would make every effort to keep the power cost at 1.60-1.70 baht per unit (kilowatt/ hour), comparable to the 1.78 baht estimated under the coal-fired project.
Given the planned relocation, construction would begin in 2005 at the earliest. The revised project would have a debt-to-equity ratio of 3:1, Mr. Sarat said.
Earlier, Union Power Development Co (UPDC), developer of the other controversial 1,400-megawatt Hin Krut power plant, agreed to move its plant from Prachuap Khiri Khan to another site, most likely in Ratchaburi.
It also agreed to use natural gas instead of imported coal.
In a related development, Gulf Electric has signed a loan facility agreement with Bank of Ayudhya worth 1.05 billion baht to finance Gulf's bi-mass small power project, Gulf Yala Green Co, in Yala.
The project, with a generating capacity of 20.2 megawatts, will be fuelled by Para wood chips to be supplied by Asia Ply Wood Co.
As the project calls for an investment of 1.5 billion baht in all, the balance of 450 million baht will come from equity. The project's power generating cost is 1.80-1.90 baht per unit with 18 satang subsidized by the Energy Conservation Fund.
Mr. Sarat said that company was studying the possibility of investing in another biomass power project or the same kind in Trang.
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