Thai Oil is ready to invest US$700 million (Bt25.06 billion) in a new 1,400-megawatt power plant, confident it has an advantage over other potential bidders in the Independent Power Producer (IPP) programme.

"If we're allowed to join the IPP bidding, we have the chance to win. The location for the new power plants has passed the environmental standards set by the Natural Resources and Environment Ministry.

"We're also ready in terms of the gas pipeline, the transmission grid, as well as experienced personnel," said Viroj Mavichak, president of the company.

Thai Oil, a subsidiary of PTT, is waiting for the Energy Ministry's final decision on whether subsidiaries of state enterprises PTT and the Electricity Generating Authority of Thailand would be allowed to join the bidding.

Thai Oil plans to locate the two new power plants, with combined capacity of 1,400 MW, near its existing plant in Sri Racha, Chon Buri. They would use natural gas as fuel.

Viroj said bidding terms remained unclear but that in getting prepared for the bid, the company had considered various investment options.

Thai Oil could propose the bid itself or bid through a subsidiary or joint venture.

"We'll finalise which option to take once the bidding terms get clearer," he said.

He said if the Energy Ministry finally decided to block state enterprises as well as their subsidiaries from the bid, then Thai Oil would be forced to join the bid through a new company.

He said so far, several investors, local and foreign, were interested in joining the bid, because financial institutions were ready to provide funding to power-generating investment projects, due to the low risks involved.

Thai Oil set to make IPP bid

The Nation