Banpu bolsters expansion in the U.S.

Editorial Staff

Banpu bolsters expansion in the U.S. from upstream to downstream, ensuring opportunities for stable returns

Banpu Plc, a leading international versatile energy provider, emphasizes its direction in creating the continuous growth in the energy business value chain in the United States in order to accelerate the transition towards greener energy.

Mrs. Somruedee Chaimongkol, chief executive officer of Banpu Plc, said Banpu is continuously expanding business growth in the U.S., covering the entire value chain from upstream to downstream. The United States is one of the key strategic business markets for Banpu. Combined with the ongoing positive trend in the U.S.’senergy industry, it enables Banpu for the expansion of businesses.

This includes the gas business, the large gas-fired power plants in the merchant power market i.e., Electric Reliability Council of Texas (ERCOT), which is one of the seven fastest growing electricity markets in the U.S. Concurrently, Banpu is also expanding its energy-related businesses in the merchant power market which includes power trading and power retail to supply electricity to retail consumers.

All of these align with Banpu’s integrated energy solutions and strengthen our business ecosystem in the countries where we invest by primarily focusing on enerating profit and maintaining a steady cash flow.

Temple I Power Plant in Texas

At the beginning of July 2023, there has recently been a successful acquisition of the commercially operating gas-fired power plant such as Temple II, which deploys high efficiency, low emissions (HELE) technology. It has a power generation capacity of 755 megawatts and is located in Texas, U.S., next to the existing Temple I gas-fired power plant.

This enhances the efficient operation and management of the power plants, facilitating the economies of scale as well as allowing an integration and co-creating value with Banpu’s existing natural gas asset such as the Barnett shale in Texas where Banpu manages an over 778-milesmidstream gas pipeline and related infrastructure.

Additionally, Banpu also has Marcellus shale in Pennsylvania. With both sources combined, Banpuhas a production capacity of up to 900 Million Cubic Feet Per Day (MMcfpd) and proven gas reserves (1P) in the U.S. of 5.8 Trillion Cubic Feet Equivalent (Tcfe). Currently, Banpu is one of the top twenty largest natural gas producers in the U.S. And in the past year, the gas business generated an EBITDA of USD 1,052 million for the Company.

Temple II power plant  in Texas

In the second half of the year, it is anticipated that Banpu's performance will remain strong as natural gas prices and demand still has the tendency to increase as indicated by the EIA report, while the power generation business is expected to generate additional revenue immediately from the Temple II power plant investment.