Gulf International Holding Pte. Ltd. of Thailand has agreed to buy Dien Xanh Gai Lai Investment Energy Joint Stock Co., the developer of two wind power projects in Vietnam for $200 million USD.
Collectively known as the Onshore Wind Farm Projects, the two are La Pech 1 and La Pech 2 in Gia Lai Province, in central Vietnam. They two wind farm projects are expected to generate 100,000 kilowatts of electricity each year, which will then be sold to the state-owned Vietnam Electricity (EVN) for 20 years.
Gulf International, is a subsidiary of Thailand’s major energy producer, Gulf Energy Development Public Co., said in a filing to the Stock Exchange of Thailand (SET) on July 2 that they expect construction for both wind farms to begin in 2021, with commercial operations to begin in the fourth quarter of 2022. The company expects the plants to generate annual revenue of $22.5 million USD.
In 2018, Gulf International invested $650 million USD in a joint venture with Thanh Thanh Cong Group to operate real estate and energy businesses in Vietnam.
To date, the partners have established a solar plant and a wind plant in Ben Tre Province in the southern part of the country.
Both projects are expected to generate 340,000 kw output capacities, under three phases. Starting in 2021, the wind plant, named Mekong Wind will sell begin to electricity to EVN under a 20 year contract.
Gulf Energy said in their report to the SET that it expects the wind farm projects to contribute 5% to its revenue in 2021, and that it plans to make further investments into renewable energy businesses and LNG gas projects in Vietnam.