Thailand’s Gulf Energy Completes Deal to Buy Stakes in US Power Project

Gulf Energy Development Plc, which is based in Thailand, expands investment in the United States with acquisition of 49 percent shares in Jackson Generation natural gas-fired power project in Illinois, on Sept, 9, 2022. (Gulf Energy Development)

Thailand’s power producer, Gulf Energy Development Plc, has completed a deal to acquire a 49 percent stake in the 1,200-megawatt gas-fired power project in Illinois as part of its expansion efforts in the United States.

The company initiated the acquisition through its subsidiary Gulf Energy USA in September 2022. The deal, valued at more than $400 million, gives Gulf Energy a 49 percent stake in the Jackson Generation natural gas-fired power project.

Gulf Energy chief financial officer Yupapin Wangviwat said on Wednesday that Gulf Energy USA had completed a buy and sale agreement and that Gulf would see profits immediately, Bangkok Post reported.

The deal with Gulf’s long-term Japanese partner, J-POWER, is expected to increase its revenue by 50 percent this year. Yupapin said last year that the investment will help Gulf’s expansion into the U.S. energy market.

“As electricity demand in the United States continues to increase, Gulf sees the opportunity to develop other power projects and is also considering the potential for additional investments with various partners, including J-POWER, who has a number of renewable energy projects under development in the United States,” she said.

Jackson Generation began commercial operation on May 4, 2022, and supplies electricity to the Pennsylvania Maryland Interconnection (PJM) merchant market, which provides wholesale electricity to 13 states in the United States.

Gulf stated last year that Jackson Generation has secured a gas supply agreement with a major natural gas supplier and is connected to three main gas pipelines to ensure a sufficient fuel supply for the long term. It did not elaborate on the details.

Gulf currently has total capacity of 9.4-gigawatts, with a target to reach 14.5 gigawatts by 2027, most of it in Thailand.

The company is owned by Thai billionaire Sarath Ratanavadi, who Forbes ranks as the country’s fourth richest.

Gulf Energy has been diversifying its business into digital infrastructure, and took a controlling stake in InTouch Holdings Plc, which owns Thailand’s top mobile operator, AIS, in 2021.

In January 2022, the company announced a joint venture with the world’s largest crypto exchange, Binance, to set up an exchange in Thailand.

Reuters contributed to this report.