Meralco Eyeing Thailand Gas Plant

For investment inroads overseas, the Manila Electric Company (Meralco) is betting on a possible natural gas-fired power

plant development in Thailand, serving as its second capital outlay interest in the Southeast Asian region.

Meralco Chairman Manuel V. Pangilinan, in an interview with reporters, has noted that the plan for Thailand will be

entering into an “energy conversion” pact with state-run firms.

Essentially, the business model would entail that state-owned Petroleum Authority of Thailand (PTT) will be the fuel

provider and the off-taker will be another state-run firm Electricity Generating Authority of Thailand or EGAT.

“In Thailand, the advantage is that the fuel is supplied by the government through PTT… generally, for power produced,

you’re given an off-taker, so essentially, you’re a processing plant – fuel (sic) conversion plant,” he explained.

Pangilinan added that the “terms are not high because you’re protected from both ends – the fuel source and the off-take.”

The Meralco top honcho said the investment paradigm in Thailand is different from that of Vietnam, because in the latter,

it was only the off-take (purchase of electricity produced) that will be underwritten by its state-owned utility Vietnam

Electricity or EVN.

“The situation in Thailand is different,” he stressed, adding that the remaining major risk for the project developer will

be on the construction of the power plant.

Pangilinan nevertheless qualified that “there’s nothing definite” as far as its Thai investment plan is concerned. “We

look at opportunities there because they seem considering building a power plant,” he emphasized.

Apart from Vietnam and Thailand, he hinted that the company is looking at “two to three countries more” for regional

investment prospects, and that would include Myanmar.

Meralco executives though are forthrightly acknowledging that they are still navigating investment terrains and have been

evaluating options what will work best eventually for the company.

Pangilinan presented a comparison of options based on their initial assessments of Thailand and Vietnam prospects.

“In Vietnam, generally, you’re given an off-take also by the government through EVN, the fuel it’s up to you to source. So

it’s different models for each country, so if you’re in Vietnam or Thailand, you’re protected on one end or on both ends,”

he said.

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