Glow Energy Cogeneration Plant

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The Thai Co-Generation Company (COCO) developed an 890 MW gas-fired cogeneration plant in the Map Ta Phut Industrial Estate, Rayong Province and a 120 MW cogeneration plant at the adjacent Eastern Industrial Estate, Rayong Province. The plants were to provide power and steam to industrial users in the Estate, and to sell excess power to the Electricity Generating Authority of Thailand (EGAT) under the Small Power Producers (SPP) program. COCO was originally owned by Banpu (34.8%, Thailand), Sithe Pacific Holdings (33.6%), Vattenfall's subsidiary Nordic Power (7.4%) and Imatran Voima Holding (7.4%). In 2000-2001, COCO's ownership structure changed: first, in mid-2000, Sithe Holdings acquired a 22% stake in COCO from Banpu, and a 6% stake held by retailed investors; then, in the end of 2000 and early 2001, Tractebel (SUEZ) acquired all shares held by Sithe, Banpu and Nordic Power, raising its direct and indirect ownership of COCO to approximately 84.5% and delisting the company. In March 2005, SUEZ-Tractabel created Glow Energy, a company to own its activities in Thailand. In April 2005, Glow Energy conducted an IPO on the Stock Exchange of Thailand, floating 506 million shares (31%) at 24 baht (US$0.63) per share. 253 million shares were sold to foreign institutional investors, 203 million shares to domestic institutional investors and 50 million with retail investors. SUEZ International retained 69% Glow Energy said it would use the cash raised to expand the Map Ta Phut plant. The Map Ta Phut project was divided into four phases. Phase I involved the construction and operation of a water plant at a cost of US$ 32 million. The water produced was sold solely to sixteen industrial companies located in the Map Ta Phut Industrial State. Phase I became fully operational in July 1994. Phase II involved the construction of a 300-MW (2x150-MW) gas-fired power plant at an estimated project cost of US$ 432.0 million. Financing for the first stage was obtained from syndicated loans from local and foreign banks and export credits in 1994. GEC-Alstom was the equipment supplier for this phase, which commenced operations in October 1996. The Electricity Generating Authority of Thailand (EGAT) purchased 180-MW of the Phase II plant. The remaining 120-MW was sold to industrial clients. Phases III included a 470 MW hybrid cogeneration plant run on natural gas and bituminous coal (mostly imported from Indonesia). Construction began in 1997, and began full operation in March 1999. Phase III was undertaken by COCO's subsidiaries MTP Cogeneration and Thai Cogeneration Co. Black & Veatch, Marubeni, Thai Electric Development and Sino-Thai Construction were selected as the contractors for the expansion. IVO Power Engineering has been selected for the energy management system for this phase of the project. Financial closure for the Phase III was achieved in 1997, with a combination of loans (US$ 340 million), Eurobonds and capital increase. COCO issued $100.0, 10-yr Eurobond which was purchased by European, Asian, and US institutional investors. The first 70-MW gas turbine became operational during 1997 with the remaining 400-MW (140-MW + 160-MW + 100-MW) in capacity concluded in Mar. 2000. Development of transmission lines were also part of the expansion. The estimated project cost of the expansion ws $686.0 million. The Phase III plant supplied 300 MW of electricity to EGAT under the SPP program, and provided the remaining 170 MW to industrial customers. Phase IV provided another 120 MW of capacity, bringing the entire plant to 890 MW capacity by December 2005. Adjacent to the Map Ta Phut project was the 120 MW Glow SPP1 facility. Completed in February 1998, the facility sells 110 MW of electricity to EGAT, and provides steam and 10 MW of power to industrial customers in the Eastern Industrial Estate in Rayong province through an underground distribution network. Phase V included the development of 382MW gas-fired cogeneration power plant in Map Ta Phut. In July 2008, Glow Energy Plc. signed US$302 million in contracts with a consortium of Marubeni and Black&Veatch for equipment supply and construction of the plant. www.glow.co.th