Nexif Energy Pte Ltd, an independent power producer in Asia and Australia, has signed an engineering, procurement and construction (EPC) contract for its 110MW cogeneration (cogen) project in Thailand’s Rayong province.
Nexif Energy acquired the project in June 2017 and is making rapid progress towards achieving financial close in the first quarter of 2018 (1Q18).
“We are encouraged by the progress we are making in the development and financing of the project, our first in the country,” said Nexif Energy co-CEO Surender Singh in a statement.
In August 2015, Nexif Pte Ltd and Denham Capital Management LP partnered to form Nexif Energy, a South-East Asian, Bangladesh and Australian focused independent power producer.
The Rayong project will supply electricity to the Electricity Generating Authority of Thailand under a 25-year power purchase agreement (PPA), and provide energy to industrial customers.
It will be financed by a consortium of leading lenders on a non-recourse basis, with Standard Chartered Bank plc leading the financing effort.
In the same statement, Nexif Energy executive VP for development Srinivas Rao said the project was well structured as it was “underwritten by a long-term PPA with creditworthy off-taker, has long-term gas supply contracts with a leading gas supplier, and has the ability to supply electricity and steam to industrial customers.”
He said the company targets to complete the remaining permitting and financing by 1Q18.
The turnkey fixed price EPC contract was signed with a consortium of Korean construction companies comprising Doosan Heavy Industries & Construction Co Ltd and SC Engineering Co Ltd.
It includes the supply and erection of a General Electric 6FA gas turbine operating in combined cycle with a Doosan DST-G20 steam turbine, the company said in the statement.
“We are working hard to progress our pipeline of power generation projects throughout Vietnam, the Philippines, Bangladesh and Australia,” said Nexif Energy co-CEO Matthew Bartley.
In December 2017, Nexif Energy was awarded a concession for an 80MW wind farm project in Vietnam’s Ben Tre province.
In addition, the company said it had achieved financial close on the first phase of its Lincoln Gap 212MW wind farm and 10MW battery project in Australia in November last year.
Nexif Energy’s Coc San hydro project in the Lao Cai province in Vietnam was acquired in early 2016 and achieved commercial operations in the middle of that year. — TMR