Engie Disposes of Asian Glow but Still Keen on Gas

Describing it as "another step" towards decarbonising its portfolio, French energy giant Engie has sold its 69.1% stake in Thai independent power producer Glow for €2.6bn ($3bn), and thus will no longer operate any coal-fired assets in the region. However it told NGW June 21 that decarbonising meant exiting coal, not gas which fuels two-thirds of the 3.2 GW capacity at Glow's disposal. 

It signed June 20 a share purchase agreement with Global Power Synergy Public Company, an independent power producer listed on the Stock Exchange of Thailand, subject to approval from GPSC shareholders and the relevant regulators.

"This disposal is in line with Engie's strategy aiming at reducing the group’s carbon footprint, to focus on low-carbon activities, global networks and client solutions. With the disposal of its interests in Glow, Engie will no longer operate any coal-fired assets in Asia-Pacific, and will reduce its global coal-fired generation installed capacity by 14%," it said June 20. The company told NGW that the deal was all or nothing, so the gas capacity had to be sold along with the 1 GW of coal-fired capacity. 

The transaction will also cut its net debt by €3.3bn, thus achieving the portfolio rotation program target that it had set two years ago. The proceeds from the sale of Glow will go into low CO2 power generation, global networks and client solutions, it said. Glow owns and operates production facilities across Thailand and Laos and has 800 employees. The portfolio has a total power generation capacity of 3.2 GW, comprising 1 GW of coal, 2 GW of gas and 0.2 GW of renewable energy.

Engie is left with 4.2 GW of mostly gas generation capacity in the Asia-Pacific region, but with some renewables, which is growing.