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Gulf Energy buys local firm to acquire two wind farms


Gulf Energy Development Pcl., through its subsidiary Gulf International Holding Pte., Ltd., will buy up Dien Xanh Gia Lai Investment Energy JSC for $200 million to acquire its two wind farms in the Central Highlands province of Gia Lai.

Gulf Energy Development Plc. announced yesterday that it has entered into a share purchase agreement with representatives of Dien Xanh Gia Lai Investment Energy JSC in order to acquire 100 per cent stake in this company. Dien Xanh Gia Lai is the developer and operator of two onshore wind farm projects – Ia Pech 1 and Ia Pech 2 (50MW each) located in Ia Grai district of Gia Lai.

The purpose of this purchase is to take advantage of low interest rates as the firm seeks projects with a quick return on investment.

Both projects will generate and sell electricity to Vietnam Electricity (EVN) for 20 years, with a total project cost of approximately $200 million. The company expects to begin the construction for both Ia Pech 1 and Ia Pech 2 within 2021 and the projects are expected to reach commercial operation by the fourth quarter of 2022.

Previously in November 2019, Gulf Energy Development signed a cooperation agreement with Ninh Thuan People's Committee on researching and proposing investment for the Ca Na LNG power project.

Under the agreement, the two sides agreed that the scope of co-operation includes the exchange of research results, experience in the supply of imported LNG and construction of gas power plants, information on financial capacity, and issues involved in the project of supplying LNG to Vietnam, investing in the construction of port infrastructure to import LNG and power plants running on natural gas.

The project aims to provide natural gas and electricity with modern technology and suitable prices for the Vietnamese market and provide natural gas to the whole region.

Last year, after its investment announcement in Vietnam, Gulf’s CEO Sarath Ratanavadi become the richest Thai shareholder with shares valued at around $3.78 billion, doubling in value over the previous year.

VIR also reported on Gulf redoubling its efforts to develop power plants in Vietnam and Laos.

To date, Gulf operates as a holding company with a portfolio of electricity, steam, chilled water generation, and related businesses.