[Date Prev][Date Next][Thread Prev][Thread Next][Date Index ][Thread Index ]

PTT seeks to delay Burma gas delive



 The Nation (Thailand) 
 December 9, 1999, Thursday 

PTT seeks to delay Burma gas delivery 

BYLINE: WATCHARAPONG THONGRUNG / The Nation 

CITING the economic crisis, the Petroleum Authority of Thailand (PTT) 
has asked the Industry Ministry to negotiate with the developer of Burma's 
Yetakun gas field to postpone the delivery of 140 million cubic feet (mcf) 
of gas per day as scheduled in the second phase. 

In the first phase, the PTT will accept 200 mcf per day from July 1, 2000 
and raise it to 260 mcf per day after a month. 

According to the contract, delivery will gradually increase to 
400 mcf per day in 2003. 

In order to avoid problems in the second phase, the PTT wants the 
Industry Ministry to postpone acceptance of delivery so that it is 
not subject to the "take-or-pay" clause in the contract. 

Informed sources said PTT is likely to face constraints in buying 
gas for the next four to five years due to the economic crisis, which 
has significantly affected demand projections. 

Yesterday, Steve Lowden of Premier Oil, Ismail Omar of Petronas, 
and T Konishi of Nippon Oil, who are shareholders of the Yetakun 
project, discussed with Industry Minister Suwat Lipatapanlop PTT's
readiness to take delivery of the gas. 

UK-registered Premier Oil holds 26.6 per cent in the Yetakun project; 
Nippon Oil 14.2 per cent; PTTEPI, a unit of PTT Exploration and 
Production  14.2 per cent; MOGE of Burma 15 per cent; and Petronas 
30 per cent. 

Suwat said the officials are worried because the Ratchaburi power plant 
is not yet operational and there could be problems similar to the Yadana 
gas field in Burma, when PTT was unable to accept deliveries
and was subject to the take-or-pay clause in the contract. 

Although the Electricity Generating Authority of Thailand, the developer 
of the Ratchaburi power plant, was asked to speed up the signing of a gas 
purchase contract with PTT in August, there has been no progress so far, 
according to Suwat. 

Arnon Sirisaengthaksin, a senior official of PTT responsible for natural gas 
business, said the Yetakun field will be able to deliver gas according to the 
contract, especially after reserves estimates were upped from 1.1 trillion 
cubic feet to 2.92 trillion cubic feet in January this year. 
 
He said the PTT will have no problem accepting gas from July 1, provided 
the Ratchaburi power plant's thermal and gas turbine units are completed by
then. 

In addition to 200 mcf of gas from Yetakun, the PTT has to take delivery of 
500 mcf of gas from the Yadana field from July onwards. The gas will then be 
delivered to the Ratchaburi and Tri Energy power plants via the 
Ratchaburi-Wang Noi pipeline. 

"If things proceed as scheduled, gas delivery from Yetakun during the first 
phase will pose no problem," he said. 
Internet ProLink PC User