SET-listed Banpu, a non-oil energy conglomerate, is seeking new assets in gas exploration and production as well as gas-fired power generation businesses to fuel its growth in the US.
The move aims to benefit from the US energy market, which has high potential to expand, said Somruedee Chaimongkol, chief executive of Banpu.
Under the new asset acquisition plan, its subsidiary BKV Corporation will look for investment opportunities in upstream gas businesses, while another subsidiary, Banpu Power Plc, will look for assets in the gas-fired power plant industry.
Banpu also plans to launch energy solution services in the US next year through its energy technology arm, Banpu Next.
"We are looking for opportunities in businesses related to gas assets," said Mrs Somruedee.
"With high gas prices and power tariffs, energy assets tend to be frequently transferred from global investment funds."
Banpu's energy business in the US is expanding.
In May, BKV signed an agreement to buy the natural gas and midstream gas business from XTO Energy Inc and Barnett Gathering LLC, two subsidiaries of Exxon Mobil, for US$750 million.
BKV operates gas production in Texas's Barnett shale field and Pennsylvania's Marcellus shale field, with combined production capacity of 700 million standard cubic feet per day (MMSCFD).
The new agreement, with gas production capacity of 225MMSCFD, increases Banpu's total gas production in the US to more than 900MMSCFD.
Last year, Banpu also concluded a share purchase deal worth $430 million (14.3 billion baht) to acquire a new power plant in the US in a move to adopt more high-efficiency, low-emission technology.
The deal led to the purchase of a 100% share in Generation Intermediate Holdings II LLC, which runs Temple 1 power plant in Texas.
The Temple 1 plant is a combined cycle gas-fired power plant with electricity generation capacity of 768MW. The plant began operation in July 2014.
Banpu is also approaching renewable power companies to acquire new clean energy development projects in the US, Australia, China, Japan, Indonesia and Vietnam.
For the coal business, Banpu plans to maintain coal production in Indonesia, China and Australia at 40 million tonnes a year total as coal prices are expected to stay at $300 a tonne on average this year, said Mrs Somruedee.
The Russia-Ukraine war, which affects energy supply for the EU, is expected to cause energy suppliers from Europe to seek more coal in Asia-Pacific, particularly Australia and Indonesia.
Next year, Banpu plans to pilot the conversion of coal to other products under coal-to-oil and coal-to-chemical projects in Mongolia, following a recent test run of the technology.
Banpu operates coal exploration and mining at 15 sites of coal deposits in the coal-rich country through its subsidiary Hunnu Coal Co.
