MITG

WHA Utilities and Power PLC (WHAUP) joins hands with GULF-MITG to launch the natural gas distribution services, “WHA Eastern Seaboard NGD 2 Project (WHANGD2)” in the EEC area. Mr. Wisate Chungwatana, CEO WHAUP, disclosed the first customer of WHANGD2 will consume 100 MMBTU/day and is prepared to roll out 1 more project in 2019, with confidence that the natural gas distribution business will generate long-term business growth. While Ms. Yupapin Wangviwat, Senior Executive Vice President of GULF said WHANGD2 has the capacity of the natural gas distribution at 2,000,000 million BTU/ year and has planned to launch the second project by April 2019. Mr. Wisate Chungwatana, Chief Executive Officer of WHAUP revealed that WHA Eastern Seaboard NGD 2 Project (WHANGD2) has achieved the commercial operation since December 1, 2018 by distributing the natural gas to the first customer in WHA Eastern Seaboard Industrial Estate 2. This is the first project of the business collaboration among leading energy companies, WHAUP, Gulf Energy Development PCL. (GULF), and MITG (Thailand) Co., Ltd. (MITG), under the joint venture company named GULF WHA MT Natural Gas Distribution Co., Ltd. (“Gulf WHA MT”), in providing natural gas distribution services to support the energy demand of the industrial users at WHA Eastern Seaboard Industrial Estate 2, Sriracha, Chonburi province, in the Eastern Economic Corridor (EEC). Ms. Yupapin Wangviwat, Senior Executive Vice President of GULF said the project has an initial investment of approximately 198 MB. It has natural gas distribution capability at 2,000,000 million BTU per year. The company has signed a 10-year gas sale and purchase agreement with PTT PLC., as well as a 10-year gas sale and purchase agreement with the customer, each renewable every 10 years. WHANGD2 project has already obtained the Natural Gas Retail License and the Natural Gas Transmission License from the Energy Regulatory Commission. “WHANGD2 project is the first natural gas distribution project achieving COD by the Gulf WHA MT JV. The second project is currently under construction and expected to commence the COD as planned in April 2019 while studying other new projects in pipeline.” said Ms. Yupapin. Mr. Wisate added that the natural gas distribution services of WHANGD2 are WHAUP’s 3rd business, in line with the strategies to expand our utilities and power services. The first customer is SAIC Motor-CP Co., Ltd. using 100 MMBTU/day at the initial stage. At present, the WHA Eastern Seaboard NGD 4 Project (WHANGD 4) is under construction and expected to be completed within Q1/2019 while the JV is conducting the feasibility studies and the environmental impact assessment (EIA) of WHA Eastern Seaboard NGD 3 Project (WHA NGD 3) which results are expected to be known by 2019. All projects are prepared to serve industrial growth in the EEC. “The Company is confident that the natural gas distribution service in WHA Industrial Estates is a good business as natural gas is clean energy at a reasonable price. Natural gas is the primary energy for industrial use now and in the future, replacing fuel oil and diesel. In addition, the natural gas distribution service can help reduce the road transport risk, reduce traffic in the area, and very safe to transport. Moreover, it also enhances the stability of customer’s energy consumption since NGD2’s pipeline system is connected with PTT’s main natural gas pipeline system. Also, WHA Industrial Estate’s majority of customers are large manufactures with long-term investment. Thus, the natural gas distribution service can very well serve their energy demand growth in the future.”, said Mr. Wisate.