SET-listed Gulf Energy Development (Gulf) on Friday said it has invested US$409 million in a 49% stake in Jackson Generation, a 1,200-megawatt natural gas-fired power project in Illinois, its first expansion into the United States.
Gulf is acquiring the stakes from its long-term Japanese partner, J-Power Group, and joins other Thai firms in investing in US energy, including miner Banpu Pcl, owner of Denver-based BKV, which in May bought natural gas properties from Exxon Mobil for $750 million.
J-Power Group, one of the world's largest independent power generation companies, has been a strong partner of Gulf for over 20 years and has jointly invested in natural gas power projects under the Gulf JP group, including some of Gulf’s earliest independent power producer (IPP) projects.
- Statement from Gulf CFO -
"As electricity demand in the United States continues to increase, Gulf sees the opportunity to develop other power projects," chief financial officer Yupapin Wangviwat said in a statement, adding Gulf was considering other interests in the US, including renewable energy.
The investment in Jackson Generation can be considered Gulf’s first step into the US energy market, she said.
- The Jackson Generation deal -
The deal is expected to conclude by December and Gulf would add to its profits immediately, as the project was already operating in operations.
Gulf currently has total capacity of 9.4-gigawatts (GW) with a target to reach 14.5 GW by 2027, most of it in Thailand.
Jackson Generation, located in Illinois’s Will County, began commercial operation on May 4, supplying electricity to the Pennsylvania – New Jersey – Maryland Interconnection (PJM) merchant market.
Gulf reported to the Stock Exchange of Thailand on Friday that PJM is a regional transmission organisation with the highest reliability and electricity demand in the US, coordinating the movement of wholesale electricity in 13 states, namely, Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia, as well as the District of Columbia.
Jackson Generation has secured a gas supply agreement with a major natural gas supplier and is connected to three main gas pipelines, ensuring that the project will have sufficient fuel supply in the long term.
- Gulf owner -
Gulf is owned by billionaire Sarath Ratanavadi, who Forbes ranks as Thailand's fourth richest.
In January, the company announced a joint venture with the world's largest crypto exchange, Binance, to set up an exchange in Thailand.
Gulf has been diversifying its business into digital infrastructure and last year took a controlling stake in InTouch Holdings Pcl, which owns Thailand's top mobile operator, AIS.
