Completed Development AidData Chinese Aid

China Development Bank contributes to $250 million syndicated loan for Extension of Petroleum Pipeline System in Northeastern Project

$125M USD

Funder	China Development Bank (CDB)
Recipient Organization	Thai Pipeline Network Company Limited (TPN)
Country	Thailand
Start Date	Sep 21, 2020
End Date	Apr 04, 2026
Duration	2,021 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`89211`

Grant Description

CDB contributions to USD 250 million syndicated dual-currency loan for Extension of Petroleum Pipeline System in Northeastern Project On September 21, 2020, the Guangdong Branch of China Development Bank (CDB) and Bangkok Bank Public Company Limited (BBL) signed a set of $250 million syndicated dual-currency facility (loan) agreements worth (THB 7.8 billion) with Thai Pipeline Network Company Limited (TPN or 泰国管网有限公司) — a special purpose vehicle and joint venture of Electricity Generating Public Company Limited (44.59% ownership stake) and Biggas Technology Co., Ltd. (55.41% ownership stake) — for the Extension of Petroleum Pipeline System in Northeastern Project.

📋 Loan / Grant Terms

💰 Loan Amountcarried a 14-year maturity and an unknown interest rate

📅 Maturity14 years

The borrower is expected to use the loan proceeds to finance a $285 million commercial contract between China Petroleum Pipeline Bureau (Thailand) Co., Ltd. — a subsidiary of China Petroleum Pipeline Engineering Co. Ltd. (CPP) — and Thai Pipeline Network Company Limited (TPN), which was signed on February 27, 2019.

The project involves the construction of a 342.8-kilometer underground fuel oil pipeline extension with an annual transport capacity of approximately 5,443 million liters, connecting the Thai Petroleum Pipeline Co., Ltd Terminal in Saraburi to TPN’s owned terminal with storage capacity of 142 million liters in Khon Kaen.

The pipeline crosses 5 provinces from Saraburi Province to Khon Khaen Province and associated storage facilities in Khon Kaen Province.

Upon completion, the project is expected to serve the northeastern Thai market in a more cost-effective and environmentally-friendly manner compared to the current trucking and railway transportation of petroleum to the region. CPP is the contractor responsible for project implementation. Project implementation commenced in February 2020.

As of the end of 2020, the project had achieved a 59.64% completion rate (against a target rate of 64.61%). As of the end of 2021, the project had achieved a 96.32% completion rate (against a target rate of 98.76%). The project’s originally scheduled completion date was January 2022. The project ultimately secured a completion certifcate from Thai Pipeline Network Company Limited on May 31, 2022.

📋 Staff Comments

Biggas Technology Co., Ltd. is a subsidiary of Power Solution Technologies Public Company Limited.
The Asset Country Awards 2020 recently announced Best Deals by country. The financing of an oil pipeline project developed by Thai Pipeline Network Company Limited (“TPN”) received recognition under the ‘best syndicated loan’ category for Thailand.
This project is also known as the Northeast Thailand Product Oil Pipeline Project. The Chinese project title is 以建设延伸到泰国的现有石油管道系统泰国东北部地区 or 泰国东北部成品油管道项目. The Thai project title is โครงการขยายระบบขนส่งน้ำมันทางท่อไปยังภาคตะวันออกเฉียงเหนือ.
The size of CDB’s contribution to the loan syndicate is unknown. For the time being, AidData assumes equal contributions ($125 million) across the two members of the $250 million syndicate.
Ashurst acted as English law counsel to the lenders. See https://www.chandlermhm.com/news/articles/2020/23.html

📚 Sources & References

ENERGY - TPN pipeline extension to include Laos
PIPELINE SYSTEM
TPN pipeline extension to include Laos
CPP Design Institute Receives Letter of Appreciation from TPN
Thai Pipeline Network (TPN) Awards Baht 9 billion 'Oil Pipeline Expansion to Northeastern Thailand’ Contract to China Petroleum Pipeline Engineering
Chandler MHM advised on the financing of an Oil Pipeline Project
Ashurst advises lending syndicate on US$250 million dual currency facilities for petroleum pipeline expansion in Thailand
BANKING AND FINANCE IN THAILAND
EGCO-PSTC JV Signs the ฿7.3Bn Loan Agreement for Construction of Petroleum Pipeline
Electricity Generating Public: 21 September 2020 Signing of the Financial Agreements to Fund the Construction of the Extension of Petroleum Pipeline System to Northeastern Region Project
EGCO Group Successfully Achieves Financial Agreements For “Extension Of Petroleum Pipeline System In Northeastern Project'
EGCO Group Successfully Achieves Financial Agreements for “Extension of Petroleum Pipeline System in Northeastern Project”
ECGO 2020 Annual Report
EGCO 2021 Annual Report
EGCO ลงนามกู้เงิน 7.8 พันล้าน กับ “BBL-CDB” ขยายระบบขนส่งนํ้ามันทางท่อ
Thai Pipeline Network Company Limited’s US$250 Million Dual Currency Facilities
EGCO 2019 Annual Report
CPP Signs Contract for Thai Project
The Asset Country Awards 2020 - Best Deals by country: Thailand
Thai Pipeline Network Company Limited’s US$250 Million Dual Currency Facilities
EQUITY RESEARCH-COMPANY REPORT
Waranon Vanichprapa Partner
Northeast Thailand Oil Pipeline
Asset Acquisition and Connected Transaction of Power Solution Technologies Public Company Limited and Subsidiaries
中油工程关于2018年度担保实际发生及2019年度担保预计情况的公告
两大成品油管道项目助力泰国能源供应及区域联通
泰国东北部成品油管道项目进展顺利
泰国超级油管项目，“中国制造”
中企建设泰国东北部成品油管道，改善地区成品油供应状况，促进当地经济社会发展中泰推进能源领域互利合作
这份漂亮“答卷”，管道局亚太公司如此作答！
TPN, ลงนาม MOU ศึกษา 'โครงการเชื่อมท่อน้ำมันไทย สปป.ลาว และประเทศจีนตอนใต้', คณะกรรมการ TPN ร่วมแสดงความยินดี BBL รับรางวัล “Best Syndicated Loan” จากนิตยสาร The Asset ปี 2020
中泰能源合作促进区域互联互通
Document for the Shareholders’ 2021 Annual General Meeting Electricity Generating Public Company Limited
EGCO Financial Report 2019
中企承建的泰国东北部成品油项目顺利竣工 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.