The Electricity Generating Authority of Thailand (Egat) says it will probably close a deal soon to buy shares in a coal mining business in Indonesia through wholly owned subsidiary Egat International Co (Egati).
Egati president Watchara Hemruchatanun, who oversees the business development division, said the deal was expected to be finalised by June. Egat will sign off on the deal by the third quarter.
Egati approached the Indonesian miner two years ago, aiming to diversify into fuel and power resources. The share purchase is tipped to cost 6-8 billion baht.
The coal mine is in Kalimantan, Borneo and has an annual production capacity of 50 million tonnes of sub-bituminous coal.
Although global coal prices have stayed relatively low at around US$45 a tonne, the coal mine can maintain production and operating costs to stay at a competitive level.
Mr Watchara declined to give the name of the coal mine operator, saying only that the miner also aims to diversify into the power business.
Elsewhere, a joint venture of the coal-fired Quang Tri power plant in Vietnam, which Egati joined with Electricity Generating Plc (Egco), is seeking a third shareholder to join the project.
In the Quang Tri power plant, Egati holds 40%, Egco holds 30% and the third shareholder will hold the rest.
The project's total investment value is 76.4 billion baht. The venture's shareholders and the Vietnamese government have already signed a memorandum of understanding, with construction expected to start in June.
The coal-fired plant in central Vietnam will have a power-generating capacity of 1,200 megawatts and start up by 2021-22.
The plant will run using ultra-supercritical coal technology. If the project is extended to a second phase, Egati may ask Vietnam to export the power to Thailand via Laos.
Egati is also developing the Nam Ngiep 1 hydropower plant in Laos, the initial project for the company. Now 34% complete, it is expected to start up in 2019.
The 27-billion-baht hydropower plant will have a power-generating capacity of 289MW.
In Myanmar, Egati's Mong Ton hydropower plant, also known as the upper Salween project, is being redesigned to make one dam into two and allow less flooding in low-lying areas.
The previous design of the plant foresaw a generating capacity of 7,000MW. After the rejig, capacity will be 3,000MW from each dam.
Shareholders of the Mong Ton project include China Three Gorges, Sinohydro and China Southern Power Grid. The project shareholders are awaiting approval from Myanmar before starting negotiations on loans and tariffs.
Egati also has agreements with Myanmar to develop the Hut Gyi hydropower plant and a coal-fired plant in Myeik.
Energy permanent secretary Areepong Bhoocha-oom, who also chairs Egat's board, said plans are afoot to gradually thin the bureaucracy within Egati and privatise the company for better flexibility.
The privatisation will resemble what PTT Plc went through, he said, with an SET listing to follow.