Gulf acquires hydropower project in Laos for $128m
The company earlier invested in the project by holding a 40% stake in Pak Lay Power Co, a joint venture, with 60% of the investment funded by Sinohydro (Hong Kong) Holding Co.
It decided to purchase all the shares held by Sinohydro in order to wholly own the project, which will supply electricity to the Electricity Generating Authority of Thailand under a 29-year power purchase agreement, said Gulf chief financial officer Yupapin Wangviwat.
The Pak Lay hydropower plant, with an electricity generation capacity of 770 megawatts, is scheduled to commence commercial operations in 2032.
The facility, located on a stretch of the Mekong River in Pak Lay district in Xayaburi province, is a run-of-the-river hydropower plant that generates electricity by using the natural water flow, with no large reservoir.
The development cost of the Pak Lay project, which was not revealed, is part of Gulf's 90-billion-baht investment budget for 2025-2029.
Up to 80% of the budget will support the company's renewable energy development, while the remainder will go to gas-fired power plant and gas businesses as well as digital and infrastructure businesses.
'The Pak Lay investment is aligned with Gulf's strategy to increase the proportion of power generation from renewable energy sources in order to reduce greenhouse gas emissions,' said Ms Yupapin.
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