GPSC builds confidence on growth strategy with PTT group, signs Head of Agreement for Electricity Supply to PTTGC total capacity 18MW for 15 years and extend existing 46MW for 7 more years.
Dr. Toemchai Bunnag, President of Global Power Synergy Public Company Limited or GPSC, one of Thailand's leading producers and distributors of electricity, steam and utilities and PTT Group's power flagship, revealed that the company is ready to sign a 15-billion-baht 15-year Head of Agreement with PTT Global Chemical PLC (PTTGC), which has plans to construct a new plant as a part of the plan to increase its LLDPE production. The plant is located near current LLDPE plant in Padaeng Industrial Estate, Rayong which has been using industrial utilities from GPSC since 2011. The new plant, named LLDPE2, requires 18MW more electricity from GPSC, starting from April 2017. PTTGC has also agreed to extend the 46MW electricity purchase agreement for its LLDPE plant signed with GPSC for seven more years so that both will expire at the same time with the newly signed agreement which will expire in 2032.
GPSC is ready to build a new power plant or Central Utility Plant 4 (CUP-4) in Asia Industrial Estate, Rayong, to increase its capacity to meet the growth of its clients and the increased demand for industrial utilities from industrial clients.
Dr. Toemchai added that “GPSC is committed to becoming the leader of the energy industry in Asia and to strengthen the energy and utility industry by expanding and developing the project in Thailand and abroad. The signing of these agreements are part of our strategy for business growth and PTT Group’s business expansion to create sustainability for electricity and public utility for companies in the group. Our revenue recognition will begin in 2017 onward.”