$3o2m contract for glow Energy plant

According to its filing to the Stock Exchange of Thailand yesterday, Glow has commissioned Marubeni and Black & Veatch to begin construction of its biggest co-generation expansion project after making a $45-million down payment.

The project will sell electricity and steam to major petrochemical customers on the industrial estate in Rayong. The company received approval to develop the project from the Environment Impact Assessment committee on June 23.

The small power producer (SPP) has signed a contract with the Electricity Generating Authority of Thailand to supply 74MW as part of the latest SPP bidding.

Glow has also secured sales of another 190MW to large petrochemical firms and is confident of signing up customers for the remaining capacity within the next six to 12 months.

The new co-generation plant is expected to begin full commercial operations by the third quarter of 2011. Funding for the project is about $500 million, including investment in power and steam distribution systems. The project will be financed by Glow's operating cash flow and from corporate debt instruments that will be issued during the three-year construction period.