Thai independent power producer, the EGCO Group, said November 14 that it will buy a 49% stake in Paju Energy Service, a South Korean operator of a natural-gas power plant in Paju City near Seoul.
EGCO’s subsidiary, Gen Plus, will sign a sale and purchase agreement later this month to buy the stake in Paju, which is itself a unit of power generator SK E&S. The value of the deal is approximately Thai baht 26.2bn ($790mn) and the transaction is expected to be completed by January 2019, EGCO said.
Paju owns and operates a 1.8 GW gas-fired combined cycle plant (CCGT) which was commissioned in February 2017. It runs on gas imported from the USA in the form of LNG. The facility supplies electricity to the Korea Electric Power Corporation, the sole off-taker of wholesale power generation in South Korea, through the Korea Power Exchange.
Following the deal, SK E&S will own a 51% stake in Paju while EGCO will own the remaining 49%.