Electricity Generating PCL : EGCO Group Goes Beyond Power Generation with New Investment in “Oil Pipeline Extension to Northeastern Region” Project

Electricity Generating Public Company Limited or EGCO Groupannounced an expansion into other energy-related business through its 44.6% investment in Thai Pipeline Network Co., Ltd. The investment project involves the operation of oil pipeline extension to the northeast of Thailand, opening up new opportunity in the oil pipeline business with good and long term investment return.Mr. Jakgrich Pibulpairoj, President of EGCO Group, said, 'EGCO acquired equity shares in Thai Pipeline Network Co., Ltd. ('TPN'), which provides oil pipeline transportation service to the northeastern region of Thailand and oil depot service, from Biggas Technology Co., Ltd. ('BIGGAS'). We have earlier acquired 7,739,998 ordinary shares at 100 baht par value of TPN representing 43% of the total shares. We have also subscribed another 3,185,000 shares at 100 baht par value in TPN. When combined, the total shares we have acquired in TPN would reach 10,924,998 shares or 44.6% of total registered capital after capital increase. Total consideration for transaction is approximately 3,000 million baht. EGCO entered into the share purchase and subscription agreement on September 4, 2019 and signed the shareholders' agreement on September 25, 2019.'

TPN will expand its oil pipeline system to the northeast of Thailand. The pipeline will connect the oil depot owned by Thai Petroleum Pipeline Co., Ltd. (Thappline) in Saraburi to TPN's 142-milion-liter oil depot in Khon Kaen through a newly constructed 342.8-kilometer underground pipeline.The pipeline will have the total capacity of 5,443 million liters and can be boosted to 7,338 million liters in the future. The project is under construction and will start its operations in the fourth quarter of 2021.

'This investment marks EGCO's another step towards investment in energy-related businesses.Oil pipeline transport has long term potential with good investment return. This is a large scale project with significant importance to Thai economy. Supported by the government, the pipeline will be able to meet the increasing need of the people in the northeastern provinces. Majority of the customers are oil companies. In addition, the cooperation with BIGGAS, a company with high expertise in energy businesses especially oil and natural gas transportation and service provider, will create strong synergy that helps increase the competitiveness and opens up more business opportunities in the future,' Mr. Jakgrich concluded.