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No use of the Burmese gas



The EGAT would prefer to use the gas from the Gulf of Thailand.

In THE BANGKOK POST, September 24, 1999

"Egat blames PTT for shortage
Insufficient gas forces use of oil


The Electricity Generating Authority of Thailand (Egat) yesterday blamed the 
Petroleum Authority of Thailand for not being able to supply sufficient 
natural gas for its power stations, forcing it to use more expensive fuel 
oil.

Sitthiporn Ratanopas, the Egat deputy governor, said PTT was able to supply 
about 1,000 million cubic feet per day to the state power utility, although 
Egat power plants still have room to take an additional 450-500 million 
cubic feet.

As well, various gas fields in the Gulf of Thailand have gas reserves and 
production capability to match any increase in demand.

Mr Sitthiporn was responding to directives given by the National Energy 
Policy Committee on Monday that Egat reduce the use of fuel oil and diesel 
oil for power generation to save costs in the wake of rising world oil 
prices.

Mr Sitthiporn said similar problems prevail for private power producers 
whose gas demand is restricted by limited gas deliveries from the state oil 
firm.

Indigenous natural gas, mostly from the Gulf of Thailand, is about 20% 
cheaper than fuel oil which it replaces.

However, PTT officials yesterday insisted that current gas deliveries are in 
line with what was determined recently by Egat in a plan last revised in 
August.

"Egat have never informed us that they need 450-500 million cubic feet more 
gas, otherwise we would have moved to accommodate their demand," a PTT 
official pointed out.

The state oil firm has the capacity to deliver that gas from the Yadana 
field through the PTT pipeline which was completed more than a year ago. 
Egat has failed to take delivery of the Burmese gas because of the extended 
delay at the Ratchaburi power station in the western Thai province, which 
was supposed to start production in July 1998.

Mr Sitthiporn insisted that unless it is extremely necessary, such as in the 
case of a leak of the gas pipeline or a power plant breakdown, Egat will 
avoid using diesel oil.

Egat's consumption of diesel oil for power generation in the June-September 
period will not exceed 45 million litres, substantially lower than the 
planned volume of 160 million litres set earlier, he said.

Consideration factors in fuel choices are the quantity, price and the fuel 
diversification. "It is safer not to rely too much on one particular sort of 
fuel," he added."


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