Published on 15/10/2014
Banpu mulls beefing up BLCP capacity SET-listed Banpu Plc is considering expanding the generating capacity of its coal power plants in Rayong, known as BLCP, to serve rising demand in Map Ta Phut industrial estate, says chief executive, Chanin Vongkusolkit. He said it planned to expand capacity by 1,100 megawatts, raising the total to 2,534 MW. Mr Chanin said policymakers are likely to raise the proportion of coal usage from the current power development plan to create a greater variety of fuels. "We can see an opportunity to expand our facilities," he said. The company is studying the investment budget required for BLCP expansion. BLCP is a 50:50 venture between Banpu and Electricity Generating Plc, operating since 2006. The expansion plan is part of its strategy to alleviate risks from heavy reliance on coal business, as prices fluctuate in line with the global economy. "Power production provides more secure income over the long term, as we need to secure a 20- or 25-year power purchase agreement with buyers before investing," said Mr Chanin. After the expansion in 2016, the company plans to have a revenue mix of 60% from coal business and 40% from power business, compared to 65:35 now. Banpu set a revenue target of $3 billion in 2014. The company's business plan for 2012 to 2015 earmarked new project investment of US$1.27 billion excluding $779 million to be spent this year and next on its coal-fired Hongsa power plant in Laos, he said. The company is working on a new business plan that will include a budget for new investment including the BLCP expansion. Mr Chanin said Banpu plans to set aside an investment budget for acquiring new coal mines and power plants.
"We are interested in buying small and medium-sized coal mining enterprises in China and Indonesia to raise coal output by 50,000 or 100,000 tonnes from 52 million tonnes this year," he said. It is keen on solar power and coal-fired power plant investments in Japan and Thailand as well. "We may be able to close one or two deals through joint ventures or acquisitions," said Mr Chanin. Sukit Udomsirikul, managing director of Maybank Kim Eng Securities, said Banpu had an edge over other power producers investing in coal-fired power in Thailand, as BLCP was located in an industrial estate, making it an easier sell to environmentalists. "If it wants to build a new site outside the industrial estate this would be tough because of strong opposition," said Mr Sukit. BLCP is the last coal-fired power plant built in Thailand, as others that won licences were all scrapped due to protests. BANPU shares closed yesterday on the SET at 28.50 baht, unchanged, in trade worth 375 million baht.