Thai firm EGCO acquires 20% stake in 2 Chevron-owned geothermal plants

The Indonesia-based plants have total capacity of 637MW.

EGCO’s latest acquisition of a 20% stake in two of Chevron’s geothermal plants in Indonesia impressed analysts as it is a move in line with its intention to expand power capacity.

UOB KayHian said Electricity Generating (EGCO) announced the acquisition of a 20.07% stake in two Chevron’s geothermal power plants in Indonesia with a combined power generating capacity of 402MW and 235MW equivalent of stream.

The deal will likely be completed in 1Q17 but the value of the acquisitions was not revealed.

Here's more from UOB KayHian:

Both geothermal power plants (Salak and Darajat) are located in West Java province and have a combined capacity of 402MW of electricity and 235MW equivalent of stream. The power plants have secured long-term energy sales contracts with the Indonesian state-owned electricity corporation (PT PLN, Persero).

According to EGCO, this acquisition will fulfil EGCO’s plan to enhance its renewable power portfolio and expanding capacity in overseas markets.

Management estimates the deal would contribute a net profit of Bt900m-1,000m/year, or about 10.4% of EGCO’s net profit.

The 90MW Chaiyapom wind farm project (CWF) was completed and commenced commercial operations in Dec 16 on schedule. This project would contribute around Bt600m/year to EGCO from Jan 17. In addition, the three new small power producer (SPP) projects (TJ, TP and SK cogeneration) have also made about 80% progress each and are expected to commence commercial operations in 2H17 as scheduled.