Bulletin: Thai Oil's Agreement On Clean Fuel Power Arm Leaves The Company's Leverage Largely Unchanged

SINGAPORE (S&P Global Ratings) Jan. 25, 2019--S&P Global Ratings today said that Thai Oil Public Co. Ltd.'s (BBB/Stable/--) plans to finance most of Energy Recovery Unit (ERU) won't materially change the project's impact on the company's leverage through 2022. ERU is a utility unit supporting Thai Oil's Clean Fuel Project (CFP). On Jan. 22, 2019, Thai Oil announced an asset sale and purchase agreement with sister company Global Synergy Power Public Co. Ltd. (GPSC). According to the agreement, GSPC will acquire ERU, a 250 megawatt power plant with 175 tons per hour of steam capacity, and supply electricity to CFP under a 25-year power purchase agreement. GPSC will invest US$138 million through 2019-2022, accounting for 20% of the US$688 million

...SINGAPORE (S&P Global Ratings) Jan. 25, 2019--S&P Global Ratings today said that Thai Oil Public Co. Ltd.'s (###/Stable/--) plans to finance most of Energy Recovery Unit (ERU) won't materially change the project's impact on the company's leverage through 2022. ERU is a utility unit supporting Thai Oil's Clean Fuel Project (CFP). On Jan. 22, 2019, Thai Oil announced an asset sale and purchase agreement with sister company Global Synergy Power Public Co. Ltd. (GPSC). According to the agreement, GSPC will acquire ERU, a 250 megawatt power plant with 175 tons per hour of steam capacity, and supply electricity to CFP under a 25-year power purchase agreement. GPSC will invest US$138 million through 2019-2022, accounting for 20% of the US$688 million investment cost. Thai Oil will fund and oversee the construction, and GPSC will settle the remaining 80% of the investment cost plus contingency cost of US$69 million upon project completion in the third quarter of 2023. The total transaction will...

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