Latest news with #SarathRatanavadi
Forbes
02-07-2025
- Business
- Forbes
Energy-And-Telecoms Tycoon Sarath Ratanavadi Leaps Ahead To Become Thailand's Third-Richest Person
Sarath Ratanavadi. gulf development This story is part of Forbes' coverage of Thailand's Richest 2025. See the full list here . Four years after diversifying into telecoms, energy tycoon Sarath Ratanavadi is reaping the fruits of that strategic move. In April, he concluded the merger between his power producer Gulf Energy Development and Intouch Holdings, the biggest shareholder in Advanced Info Service (AIS), the country's second-largest mobile phone operator by subscribers, with the listing of the rebranded Gulf Development on the Thai stock exchange. Its market cap of 640 billion baht ($20 billion), makes it Thailand's fourth most valuable listed company. The tycoon's net worth zoomed 30% to a record $12 billion and he jumped two places to become the country's third-richest for the first time. Sarath, who founded Gulf in 2007, continues to eye new ventures. Last year, the company joined with Google Cloud to build AI-powered cloud facilities in Thailand while its joint venture with Binance, cofounded by Changpeng Zhao, launched a Thai edition of the cryptocurrency exchange. Gulf has also acquired a roughly 5% stake in Kasikornbank, founded by fellow rich lister Banthoon Lamsam's family. Notably, AIS is part of a consortium that secured approval in June to set up a virtual bank.
Forbes
26-06-2025
- Business
- Forbes
Billionaire Sarath Ratanavadi's Gulf Development, Partner Greenlight $1.8 Billion LNG Project
A natural gas facility operated by Gulf Development in Thailand. A joint venture led by Gulf Development—an energy-to-telecommunications conglomerate controlled by billionaire Sarath Ratanavadi—will invest up to 60 billion baht ($1.8 billion) to develop a liquefied natural gas terminal and regasification facility at the Map Ta Phut industrial port in eastern Thailand. Shareholders of Gulf MTP LNG Terminal (GMTP)—which is 70% held by Gulf Development and 30% by PTT Tank Terminal, a unit of Thailand's state-owned energy company PTT—on Tuesday gave the greenlight for the project to proceed.. Construction is scheduled to start in the fourth quarter of this year and commercial operations are expected to commence in the first quarter of 2029, Bangkok-listed Gulf Development said in a filing to the Stock Exchange of Thailand. The project, which will be financed through long-term borrowings and equity contributions from the partners, is part of the Map Ta Phut industrial port development. GMTP has a 35-year contract with the Industrial Estate Authority of Thailand to develop and operate the facility, which will be built across 32 hectares of reclaimed land within the industrial port. The terminal, which will be Thailand's third LNG facility, will have an annual capacity of 8 million tons in the first phase. 'It will enhance Thailand's LNG import capacity to meet the growing energy demand in the industrial and power generation sectors, in line with the country's economic growth,' Gulf said. 'Additionally, it will support the use of natural gas as fuel for power generation at the group's gas-fired power plants in the future.' Founded by Sarath in 2007, Gulf has been diversifying in recent years and has become one of Thailand's largest conglomerates with interests in data centers, telecommunications, and digital infrastructures. Earlier this month, the company won a virtual bank licence. Last year, it partnered with Alphabet's Google to build AI-powered cloud facilities in Thailand and started a crypto currency exchange with billionaire Chanpeng Zhao's Binance. With a real-time net worth of $11.5 billion, Sarath is among the wealthiest in Thailand. Bulk of his fortune comes from his stake in Gulf, which has a market capitalization of about $19 billion.
Int'l Business Times
20-06-2025
- Business
- Int'l Business Times
Thailand's Gas Gamble: How Policy Missteps and Private Gains Drive Up Power Bills
A bolt of lightning strikes the outskirts of Bangkok as the city skyline is pictured from the King Power Mahanakhon skyscraper in Bangkok on October 22, a nation where more than two-thirds of electricity is generated by gas-fired plants, Thailand's deepening reliance on expensive liquefied natural gas (LNG) imports is not just an energy strategy—it's a growing burden on its people. As global LNG prices spike and domestic gas output dwindles, questions are mounting over whether energy policy mismanagement and elite profiteering have come at the expense of the average Thai household. At the center of this complex web lies Gulf Energy Development Public Company Ltd., a powerful conglomerate helmed by Thailand's richest man, Sarath Ratanavadi. Together with the state-owned PTT Group, Gulf has secured long-term rights to import, store, and distribute LNG under lucrative government contracts. And while energy prices for consumers rise, so too do the profits of these well-connected corporate giants. The Cost of Policy Paralysis The roots of the crisis trace back to delays and dysfunction in the management of Thailand's domestic gas fields. The Erawan and Bongkot concessions in the Gulf of Thailand—once key pillars of the country's energy independence—saw production plummet following administrative upheavals. Chevron, which had operated Erawan since 1981, was ousted in 2021 in favor of a state-backed bidder, PTTEP. The handover was anything but smooth. By 2022, output from Erawan had dropped by over 50%. Despite promises from successive energy ministers to fast-track exploration and development, a combination of bureaucratic gridlock and deliberate policy choices has led Thailand to import nearly a third of its gas as LNG, compared to under 5% in 2011. These LNG imports are often priced at two to seven times more than domestically produced gas. In 2022, LNG hit a jaw-dropping $38.66 per million BTU, while Thai-sourced gas was only $5.51. The Institute for Energy Economics and Financial Analysis (IEEFA) reports that LNG imports surged 34% in 2023 alone. The financial toll on Thailand's state utility, EGAT, has been staggering—losses of 150 billion baht ($4.3 billion) between late 2021 and the end of 2022. A Tale of Two Winners: Gulf and PTT Gulf Development, once a challenger to PTT's monopoly, now appears to be its most strategic partner. The two firms jointly operate the Gulf MTP LNG Terminal, one of the country's main LNG import facilities. The terminal's capacity is set to double from 5 to 10.8 million tons annually. Gulf was granted its import license in 2020, becoming only the second private player after EGAT. Since then, the firm has expanded its influence across the LNG supply chain—from procurement to regasification to pipeline distribution. Critics argue that the system has been gamed to benefit a handful of actors. Two senior officials within the Energy Regulatory Commission (ERC), which oversees procurement policy, previously held advisory or executive roles at Gulf and PTT. The appearance of conflict of interest has eroded public trust in regulatory oversight. "This is a classic case of regulatory capture," said an IEEFA analyst who requested anonymity. "You have regulators with corporate ties making decisions that steer the country toward imported gas, which just happens to benefit their former—or future— employers." The Public Pays the Price The fallout is increasingly visible in Thai households and businesses. Electricity prices have remained elevated despite a fall in global LNG prices in 2024. EGAT, which purchases over 85% of Gulf's power output, absorbs the higher input costs, eventually passing them down to consumers. Small businesses, already recovering from the pandemic, have seen utility bills cut into margins. Rural provinces have protested rolling blackouts and unaffordable tariffs. Meanwhile, Gulf's profits have soared, bolstered by long-term contracts and a guaranteed buyer in EGAT. The government's response has been muted. While officials acknowledge rising costs, they continue to cite energy "security" and global volatility as justification for their reliance on LNG. Yet, a growing chorus of energy economists and civil society groups argue that the crisis is self-inflicted. "Thailand had the resources," said Dr. Nakornthap, a respected energy expert. "What it lacked was the political will and administrative competence to develop them." What Lies Ahead With elections on the horizon and household discontent simmering, energy policy is emerging as a political flashpoint. Some opposition leaders are calling for a full audit of LNG contracts and regulatory appointments. Others propose reforms that would prioritize domestic exploration and overhaul procurement transparency. As the Thai people pay for these missteps at the meter, the broader lesson may echo beyond Bangkok: in energy policy, inaction and insider influence can be just as costly as imported gas © Copyright IBTimes 2024. All rights reserved.
International Business Times
20-06-2025
- Business
- International Business Times
Thailand's Gas Gamble: How Policy Missteps and Private Gains Drive Up Power Bills
In a nation where more than two-thirds of electricity is generated by gas-fired plants, Thailand's deepening reliance on expensive liquefied natural gas (LNG) imports is not just an energy strategy—it's a growing burden on its people. As global LNG prices spike and domestic gas output dwindles, questions are mounting over whether energy policy mismanagement and elite profiteering have come at the expense of the average Thai household. At the center of this complex web lies Gulf Energy Development Public Company Ltd., a powerful conglomerate helmed by Thailand's richest man, Sarath Ratanavadi. Together with the state-owned PTT Group, Gulf has secured long-term rights to import, store, and distribute LNG under lucrative government contracts. And while energy prices for consumers rise, so too do the profits of these well-connected corporate giants. The Cost of Policy Paralysis The roots of the crisis trace back to delays and dysfunction in the management of Thailand's domestic gas fields. The Erawan and Bongkot concessions in the Gulf of Thailand—once key pillars of the country's energy independence—saw production plummet following administrative upheavals. Chevron, which had operated Erawan since 1981, was ousted in 2021 in favor of a state-backed bidder, PTTEP. The handover was anything but smooth. By 2022, output from Erawan had dropped by over 50%. Despite promises from successive energy ministers to fast-track exploration and development, a combination of bureaucratic gridlock and deliberate policy choices has led Thailand to import nearly a third of its gas as LNG, compared to under 5% in 2011. These LNG imports are often priced at two to seven times more than domestically produced gas. In 2022, LNG hit a jaw-dropping $38.66 per million BTU, while Thai-sourced gas was only $5.51. The Institute for Energy Economics and Financial Analysis (IEEFA) reports that LNG imports surged 34% in 2023 alone. The financial toll on Thailand's state utility, EGAT, has been staggering—losses of 150 billion baht ($4.3 billion) between late 2021 and the end of 2022. A Tale of Two Winners: Gulf and PTT Gulf Development, once a challenger to PTT's monopoly, now appears to be its most strategic partner. The two firms jointly operate the Gulf MTP LNG Terminal, one of the country's main LNG import facilities. The terminal's capacity is set to double from 5 to 10.8 million tons annually. Gulf was granted its import license in 2020, becoming only the second private player after EGAT. Since then, the firm has expanded its influence across the LNG supply chain—from procurement to regasification to pipeline distribution. Critics argue that the system has been gamed to benefit a handful of actors. Two senior officials within the Energy Regulatory Commission (ERC), which oversees procurement policy, previously held advisory or executive roles at Gulf and PTT. The appearance of conflict of interest has eroded public trust in regulatory oversight. "This is a classic case of regulatory capture," said an IEEFA analyst who requested anonymity. "You have regulators with corporate ties making decisions that steer the country toward imported gas, which just happens to benefit their former—or future—employers." The Public Pays the Price The fallout is increasingly visible in Thai households and businesses. Electricity prices have remained elevated despite a fall in global LNG prices in 2024. EGAT, which purchases over 85% of Gulf's power output, absorbs the higher input costs, eventually passing them down to consumers. Small businesses, already recovering from the pandemic, have seen utility bills cut into margins. Rural provinces have protested rolling blackouts and unaffordable tariffs. Meanwhile, Gulf's profits have soared, bolstered by long-term contracts and a guaranteed buyer in EGAT. The government's response has been muted. While officials acknowledge rising costs, they continue to cite energy "security" and global volatility as justification for their reliance on LNG. Yet, a growing chorus of energy economists and civil society groups argue that the crisis is self-inflicted. "Thailand had the resources," said Dr. Nakornthap, a respected energy expert. "What it lacked was the political will and administrative competence to develop them." What Lies Ahead With elections on the horizon and household discontent simmering, energy policy is emerging as a political flashpoint. Some opposition leaders are calling for a full audit of LNG contracts and regulatory appointments. Others propose reforms that would prioritize domestic exploration and overhaul procurement transparency. As the Thai people pay for these missteps at the meter, the broader lesson may echo beyond Bangkok: in energy policy, inaction and insider influence can be just as costly as imported gas.
Forbes
20-06-2025
- Business
- Forbes
Groups Backed By Thai Billionaires Dhanin, Sarath, Win Virtual Bank Licenses
Mobile banking is one of the services to be provided by virtual banks. Three groups backed by energy-to-telecommunications tycoon Sarath Ratanavadi, billionaire Dhanin Chearavanont's Charoen Pokphand Group and an international consortium led by Siam Commercial Bank's SCB X won permits to establish virtual banks in Thailand, the central bank announced on Thursday. The Bank of Thailand hopes the entry of new players would boost innovation in the banking industry and stimulate competition, while maintaining the country's financial stability. The virtual banks are expected to start their commercial operations within one year from the issuance of the licences. Establishing a virtual bank is a major diversification move for Charoen Pokphand, Thailand's largest conglomerate with interests in agribusiness, food, retail, e-commerce, fintech, media, real estate and telecommunications. CP Group is the main source of wealth for Dhanin Chearavanont and his family, whose net worth of $29 billion makes them the country's second wealthiest. For Sarath, a virtual bank is a natural extension of his Gulf Development's ventures in digital infrastructure such as data centers and crypto currency exchange. The project will be implemented by his Advanced Info Service, the nation's second biggest mobile carrier. Sarath has a real-time net worth of $11.1 billion. SCB X, meanwhile, has roped in digital banks such as China's WeBank and South Korea's Kakao Bank, a unit of billionaire Kim Beom-su's Kakao messaging app, to help it build a digital bank in Thailand. Although virtual bank operations can provide long-term opportunities for those getting the licenses, any immediate impact will likely be limited since they will need to book substantial investment and operating losses in the initial stage. 'We are of neutral view with this development because any material benefit will not be seen within the next five years,' Piriyapon Kongvanich, investment strategist at Bangkok-based Bualuang Securities, said. 'As earnings bases of those involved are massive, it will be difficult for future profits from the virtual bank businesses to push an uptick in their bottom lines.'
