Part of Songkhla Gas to Power Project
Korea Western Power(KOWEPO) has signed an agreement with Thai Petrochemical Industry Polene Power (TPIPP) and Korea Gas Corp. to jointly build a 1.7 GW gas power plant and liquefied natural gas (LNG) infrastructure in Songkhla Chana, a region in southern Thailand.
The agreement was signed in a non-face-to-face manner on March 3.
According to the agreement, the three companies will build a 1.7 GW gas turbine combined cycle plant in Songkhla Province, 750 km south of Bangkok. They will also build infrastructure for LNG supply such as storage tanks and a pipeline. The area was designated as a special economic zone by the Thai government in 2016. Located near the border with Malaysia and not far from Singapore, the zone is expected to grow as an economic and commercial hub in the future.
The three companies will break ground for the Songkhla power plant in 2022 and will run it for 25 years after its completion. Electricity produced by the power plant will be sold to the Electricity Generating Authority of Thailand (EGAT).
"We are planning to expand our gas turbine combined cycle plant business in Southeast Asia through this project," said an official of Korea Western Power. "We will create an export business model that can promote win-win growth with Korean financial institutions as well as Korean equipment companies."
Meanwhile, Korea Western Power is currently focusing on developing power generation projects using Southeast Asia as its strategic base for overseas businesses. Based on its experience in the construction and operation of Xe-Namnoy Hydroelectric Power Plant in Laos, Korea Western Power is expanding its business to neighboring countries such as Myanmar, Indonesia, and Vietnam.