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BKK POST: GAS PIPELINE PROJECT: Ana



February 17, 1998


                                     



                          GAS PIPELINE PROJECT

              Anand says his
              government did its
              best 

              It tried to develop gas fields in Gulf

              Chakrit Ridmontri

              The chairman of the panel organising hearings into the
              Thai-Burmese gas pipeline project yesterday felt compelled to
              respond to a statement made by project opponents which
              referred to the government he once led.

              During the third day of the scheduled 10-day hearing by the
              public information panel, opponents tried to prove that there
              were enough gas reserves in the Gulf of Thailand to render the
              pipeline from Burma unnecessary.

              They said past governments had neglected to develop the
              reserves, particularly from fields in the Thai-Malaysia Joint
              Development Area, while pressing ahead with the Thai-Burmese
              project which was potentially harmful to the environment.

              Former prime minister Anand Panyarachun, who chairs the
              panel, responded:

              "Past governments, especially the Anand 1 administration, tried
              to develop the gas exploration with Malaysia, but little was
              achieved. The Thai-Malaysia project has just begun because our
              partner just has the need to develop it."

              He said the incident indicated that the government had to spend
              decades to acquire gas for the country.

              Mr Anand replied to the opponents' argument that the reserves
              in the gas fields in the Gulf were enough for the country's energy
              needs, especially during this economic slowdown, saying he
              wanted the group to produce evidence to back up their claim.

              "You have to be aware that the gas reserves which you claim to
              be plentiful in the Gulf are only an estimation. We will know
              which gas field we can develop and use only when we can prove
              that the cited gas quantity exists," he said.

              The panel was appointed by Prime Minister Chuan Leekpai last
              week to sort out differences about the project details between
              groups opposing the project and the Petroleum Authority of
              Thailand (PTT), the state enterprise in charge of pipeline laying.

              Mr Anand asked an opposition representative to withdraw his
              words after accusing the PTT of cheating on the gas price.

              Withoon Permpongsacharoen, secretary-general of the
              Ecological Recovery Foundation, charged that the PTT distorted
              the gas price it would sell the Electricity Generating Authority of
              Thailand.

              Egat is the sole customer of the pipeline, taking all 550 million
              cubic feet of gas per day to feed its 4,600 megawatt power plant
              in Ratchaburi.

              Mr Withoon accused the PTT of adding the cost of building the
              pipeline from the Gulf as well as the Thai-Burmese pipeline itself.

              "Please withdraw you words, which undermine the dignity of the
              PTT," Mr Anand said, adding that he had to breach the etiquette
              of the chairman in interfering in the testimony because the
              accusation was groundless.

              The PTT admitted on the second day of the hearing that it misled
              the public in saying that the pipeline construction must be
              completed by July 1 or pay a hefty fine.

              The state company now said it could start taking gas delivery as
              late as August 1 without incurring the fine.

              The PTT admitted that Egat may not be able to finish building the
              power plant by July 1, the first day of gas delivery.




                                     




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Last Modified: Tue, Feb 17, 1998