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THE NATION: PTT seeks cheaper ga
- Subject: THE NATION: PTT seeks cheaper ga
- From: suriya@xxxxxxxxxxxx
- Date: Fri, 06 Mar 1998 21:35:00
Business
PTT seeks cheaper gas
from Yadana
The Petroleum Authority of Thailand (PTT)
is negotiating with the Burmese
government for a 10 per cent discount for
the additional purchase of gas from the
Yadana field.
This is expected to help Thailand cut its
costs by Bt120 billion over a 20-year
period, a senior executive said.
Despite the present economic downturn
and protests over the purchase of gas from
Burma, Piti said PTT is planning to buy 400
million cubic feet per day (mmcfd) of
additional gas from the Yadana field since
the developers -- Unocal, Total and PTT
Exploration and Production Plc -- have
reported that their volume of reserves have
increased from 5.6 trillion cubic feet to 9
trillion cubic feet.
Piti said PTT requires the additional gas to
keep up with future demand from the
domestic market and to comply with a
government directive to substitute diesel
and fuel oil with natural gas to preserve the
environment.
However, considering the fall in the demand
of energy, Piti said the additional gas
purchase from Yadana was not urgent.
Already, the delay of the Ratchaburi power
plant project has reduced the demand of
gas from Yadana to only 325mmcfd as
against the contracted figure of 525 mmcfd.
Piti said PTT is negotiating with the
Burmese authorities to lower the price of
the additional gas it seeks from Yadana by
at least 10 per cent from the current US$3
per million BTU (British Thermal Unit) in the
present contract.
If the negotiations are successful, Thailand
stands to save Bt120 billion on the
purchase of gas over the contractual
period.
Meanwhile, PTT will spend an additional
$40 million to speed up the construction of
the pipeline from Ban I-tong to the
Rachaburi power plant.
Thirty kilometres of the 260 km pipeline
remain to be constructed and the PTT has
two months to complete it.
Of the additional budget, US$27 million will
be used to pay workers who will be
employed throughout the day and $13
million will be used for reducing
construction space in rich forest areas.
Piti said PTT is ready to allow
environmental groups to supervise the
construction.
BY SUPUNNABUl SUWANNAKIJ and
WATCHARAPONG THONGRUNG
The Nation