Memorandum of Understanding between Marubeni and Global Power Synergy Company for Joint Development of IPP Projects

Jun. 14. 2013
Marubeni Corporation

On June 13th 2013, Marubeni Corporation (hereinafter “Marubeni”) executed a Memorandum of Understanding (“MOU”) with PTT Group subsidiary Global Power Synergy  Company  Limited (“GPSC”), to jointly develop new IPP projects in Thailand and neighboring countries such as Laos, Myanmar and Cambodia (“Target Countries”).

GPSC is one of the strategic subsidiary companies of PTT Public Company Limited (“PTT”) which is the largest oil and gas company listed in Security Exchange Thailand and mainly owned by PTT (30.1%) and PTT Global Chemical Public Company Limited (30.3%). It was established in January 2013, for the purpose of consolidating the power business of PTT Group, and increasing competitiveness of its power business.  It currently owns approximately 1,040MW of IPP and cogeneration plants, and aims to increase that number to 6,000MW by 2022, mainly in Target Countries, as a steady economic and power demand growth is expected in the area.

Marubeni has built a close business relationship with PTT Group, mainly through trading of petrochemical products, gas and various equipment. In power business, Marubeni was awarded as EPC contractor for IRPC Public Company’s Cogeneration project, and successfully supplied the plant in 2011. Based on these close business relationships, and also expected synergy between the two companies, stemming from GPSC’s vast experience in Target Countries and Marubeni’s vast knowledge of IPP development, both companies agreed to execute the MOU.

From now on, Marubeni and GPSC will cooperate to identify and develop good quality IPP projects, and expand its business in the region.

Under the “Global Challenge 2015” mid-term management plan, Marubeni designates IPP business as one of the most focused businesses, and aims to increase more IPP assets by good quality projects.

<Description of GPSC>

Name: Global Power Synergy Company Limited
Location: 555/2 Energy Complex Building B, 14th Floor, Vibhvadi –
Rangsit Road, Kwaeng Chatuchak, Khet Chatuchak, Bangkok 10900
Shareholders: PTT Public Company Limited                              30.10%
PTT Global Chemical Public Company Limited     30.31%
Thai Oil Power Company Limited                         27.71%
Thai Oil Public Company Limited                         11.88%
                                                                   Total: 100%
Date of Establishment: January 2013
Category of Business: Power/Steam/Water Generation
Management: Mr. Jakchai Barlee(President)