Hongkong Electric nears Thai stake sale
Hongkong Electric Holdings expects to introduce two domestic investors to its Thai power project by the end of the month, according to a senior official.
Discussions to sell stakes in the project to PTT, Thailand's largest oil and gas firm, and power producer Ratchaburi Electricity Generating Holding have reached a final stage, said Natee Sithiprasasana, project director of administration and public affairs at Union Power Development, which is commissioning the project.
A stake sale would significantly advance the power project, which has been held up for three years by environmental concerns.
'Things look good,' said Mr Natee, who is based in Bangkok. 'We are closely in talks with PTT, Ratchaburi and power regulator Electricity Generating Authority of Thailand.'
Hongkong Electric owns 26 per cent of Union Power.
According to reports, the Thai unit is considering selling 15 per cent of the power project to PTT and another minority stake to Ratchaburi to lower its investment costs and obtain access to a supply of gas.
The project is Hongkong Electric's largest asset outside Hong Kong and Australia.
'We are still discussing how many stakes we will sell and the stake sizes,' Mr Natee said.
The project, a 1,400-megawatt gas-fired power plant, would now be built in Ratchaburi province, he said.
In February, Union Power said the plant would be fuelled by gas instead of coal and its location would be moved, ending a three-year tussle with environmentalists who were worried about damage to the environment and an impact on tourism at the project's original proposed site in Hin Krut near Bangkok.
Sources close to Union Power said the revised project would cost an estimated US$900 million, compared with the original $1.25 billion estimated cost for the coal-fired plant.
