Kraisri Karnasuta, governor of the power utility authority, said the ministry's suggestions were needed before Egat would seek approval for the establishment of the company from the National Energy Policy Council and the Cabinet.

Egat International would be set up with registered capital of Bt50 million, which could be increased later on to match investment budgets.

Kraisri said that listing Egat International on the stock exchange was a fund-raising option, but it was too soon to make a clear plan on this option.

For business clarity, Egat International would focus solely on overseas investment. Egat's foreign interests would be transferred to Egat International. The subsidiary's first investment project could be in the 460-megawatt Nam Ngieb 1 hydro-electric plant, in which Egat International plans to take a 25-per-cent stake.

"We are in discussions for equity participation in a few more projects in Laos, Burma and China. We are also conducting a feasibility study on a coal-fired project in Oman," Kraisri said.

He noted that Egat International would not compete against independent producers Electricity Generating and Ratchaburi Electricity Generating Holding, though all are aiming to expand overseas. He foresaw possible partnerships with the two companies, which have Egat as a major shareholder.

"Egat International would be a tool for Egat to penetrate the overseas energy industry. Egat has so far focused on domestic investment. Involvement in foreign markets has only been via power purchases so far," he said.

In 2006, Egat remitted Bt5.6 billion of its income to the state.