Gulf Energy Seals $927 Million Port Deal with Thai Government

Thai power producer Gulf Energy Development Pcl on Thursday said its consortium had signed a deal worth 30.9 billion baht ($927 million) with the country's port authority for construction and operation of container terminals.

The firm, among the country's largest private power producers, is owned by Thai billionaire Sarath Ratanavadi and has been investing billions of dollars to expand its infrastructure business.

"Gulf will use accumulated experience in developing and managing large-scale infrastructure projects in Thailand and overseas to develop the port," said Gulf Energy senior executive, Ratthaphol Cheunsomchi.

Gulf Energy holds a 40% stake in the consortium, called GPC, while state-owned energy firm PTT Pcl and China Harbour Engineering Company Ltd each hold 30%.

The group will build and operate the two terminals in Laem Chabang port for 35 years, as part of the government's ambitious plan to drive foreign investment into its eastern seaboard.

The first terminal is expected to begin operations in 2025 and construction of the second is slated to begin in 2027. Together they will be able to handle 4 million twenty-foot equivalent units (TEU) each year, Ratthaphol said.

Gulf's traditional business is electricity and it has installed capacity of about 9.3-gigwatts, but in recent years it has been diversifying.

In 2019, Gulf and state-owned energy giant PTT began construction of a $1.3 billion gas terminal on the country's east coast.

Earlier this year, Gulf Energy also offered $5.4 billion to buy telco group, Intouch Holdings and eventually rose its stakes 42.3% in a digital infrastructure push.

InTouch is the largest shareholder in the country’s top telco firm, Advanced Info Service Pcl and satellite operator, Thaicom Pcl.

($1 = 33.3300 baht)

(Reporting by Chayut Setboonsarng; Editing by John Geddie)