Gulf expands control of Lao hydro power project with $128 million buyout

In recent days, Gulf Hydropower Holdings, a wholly-owned unit of Gulf Development, has taken a significant step to strengthen its position in Laos. The company agreed to buy a 60% stake in the Pak Lay Power project, which is focused on developing a hydroelectric power plant located in the Mekong region. This acquisition, valued at $128 million, involves purchasing the stake from Sinohydro (Hong Kong) Holding, a Chinese state-linked enterprise. As a result of this transaction, Gulf Hydropower Holdings will raise its ownership of Pak Lay Power to a complete 100%. This project is expected to generate substantial electricity output, which will be directed solely towards Thailand. Under a 29-year contractual agreement with the Electricity Generating Authority of Thailand, Pak Lay Power is scheduled to commence commercial operations in 2032. With this strategic move, Gulf Hydropower Holdings is aligning its operations with its overarching goal to be a leader in clean energy solutions. The deal highlights Gulf Development's broader strategy to enhance investments in renewable energy resources, as the company aims to reduce its overall greenhouse gas emissions and work towards achieving a net-zero emissions target by 2050. In recent months, Gulf Development has announced significant investments totaling 102 billion baht (approximately $3.2 billion) in solar and wind energy projects, further demonstrating its commitment to renewable energy initiatives. Gulf Development is recognized as a major player in Thailand’s power generation sector, but it is also diversifying its interests to include data centers, telecommunications, and digital infrastructure to create a robust conglomerate. As part of its expansion, the company plans to develop a liquefied natural gas terminal at the Map Ta Phut industrial port in eastern Thailand, showcasing a multifaceted approach to energy production and fulfillment of increasing demand.