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Unocal Pipeline Delays 6 Months
- Subject: Unocal Pipeline Delays 6 Months
- From: RANGOONP@xxxxxxx
- Date: Wed, 15 Jul 1998 05:55:00
Unocal<UCL.N>says Yadana start-up delayed 4-6 mths
LOS ANGELES, July 14 (Reuters) - Unocal Corp. said Tuesday a power plant
construction delay will push back the start-up of the Yadana natural gas
pipeline in Myanmar (Burma) by four to six months from mid-1998.
The $1.2 billion project will carry natural gas from offshore Myanmar to the
Ratchaburi power plant in Thailand.
"The power plant is behind schedule," Brian Marcotte, president of Unocal
Thailand Ltd., said at presentation to analysts here.
The power plant, run by state-owned Electricity Generating Authority of
Thailand (EGAT), will be fueled by the Myanmar gas, which will travel from
offshore into Thailand.
Marcotte said the delay of the installation of major gas turbine held up the
The plant will be ready for start-up in late 1998 and the project will ramp up
to full power in late 1999, he said.
The delay will force the Petroleum Authority of Thailand (PTT) <PTTE.BK>, a
part-owner of Yadana, to pay fines into the tens of millions to other members
of the project consortium.
Unocal owns a 28 percent stake in the natural gas project, which is owned by a
consortium that includes Petroleum Authority of Thailand, Total SA <TOTF.PA>
of France, and Myanmar's state-run Myanma Oil and Gas Enterprise.
The company also pushed back the start-up of its Pailin natural gas field
offshore Thailand from late 1998 to June 1999 due to pipeline installation
The field is expected to produce 165 cubic feet per day of natural gas
initially, then double that output by 2001. Unocal's net working interest in
the field, which has reserve potential of 2 trillion cubic feet, is 35
Meanwhile, the company forecast a rise in Thailand's natural gas production to
1.5 billion cubic feet per day by 2001 from 1 billion cubic feet per day
currently. Production will increase to meet rising natural gas demand from
power plants, which are switching to gas-fired turbines from fuel oil ones.