Ratchaburi Electricity Genera-ting Holding (RATCH) acquired 17,119,000 registered shares, representing 50 per cent of Tri Energy Co (TECO), from Chevron Thailand Energy Company I on Wednesday.
The US$21,323,495 (Bt703 million) transaction was made through RATCH’s subsidiary, Ratchaburi Gas Co, and TECO’s shareholder who owned a 49.99-per-cent stake.
RATCH CEO Pongdith Potchana said Tri Energy Power Plant is a key company asset. RATCH decided to subscribe to a share offering from TECO’s existing shareholder because Tri Energy Power Plant has considerable potential value for RATCH. In terms of growth, RATCH boosted capacity by an additional 350 megawatts and total capacity increased to 6,653MW.
After this deal, the company will transfer its equity holding in TECO to Ratchaburi Electricity Generating Co in keeping with RATCH’s investment structure.
Tri Energy Power Plant operates combined cycle technology and utilises natural gas as the primary fuel, similar to Ratchaburi Power Plant. RATCH looks for synergy between the two plants particularly in enhancing efficiency of spare parts inventory and cost management.
The company is also considering an opportunity to propose a duration extension of TECO’s Power Purchase Agreement for another 10 years after expiry of the agreement that will help strengthen the company’s operating performance. Importantly, Tri Energy Power Plant is recognised as one of the main power generators because it can generate power using diesel, a secondary fuel. It, therefore, plays a key role in supporting security of the national power system in a crisis situation caused when gas-platform operations in Myanmar cease.
RATCH will provide TECO full support to continue its business success and enhance potential value for the company’s growth, added Pongdith.
TECO is an operator of a 700MW Tri Energy Power Plant located in Muang district, Ratchaburi province. It has generated electricity for the Electricity Generating Authority of Thailand for 13 years under a 20-year power purchase agreement.