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PTT signs gas deals [gas from Burma

The Nation (Thailand)
October 31, 2000, Tuesday
  PTT signs gas deals

THE Petroleum Authority of Thailand (PTT), the Electricity
Generating Authority of Thailand (Egat) and Ratchaburi
Electricity Generating Co Ltd (Ratcha) signed two gas-sales
agreements on Friday to boost development of the country's
natural gas industry.

The signatories included PTT governor Viset Choopiban, Egat
governor Vitaya Kotcharug and Boonchoo Direcksathapon,
Ratcha's managing director.

According to the first sales agreement between PTT and Egat,
via the Ratchaburi master gas sales agreement, Egat will be
covered by a "minimum-take liability" guarantee from the Ratchaburi
power plant.

If the Ratchaburi power plant cannot meet the specified volume of
natural gas wanted, Egat can turn to the Wang Noi, Tri Energy and
South Bangkok power plants to make up the difference.

The second contract covers the 25-year gas sales agreement
between PTT and Ratcha, in which the pricing structure and quality
of natural gas have been specified. The gas price is to be based on
the pricing structure in the Gulf of Thailand.

The second agreement is based on the same principles as those for
other independent power producers (IPPs), with corresponding pricing
conditions under a Cabinet resolution passed on November 29, 1994.

The Ratchaburi power plant is now receiving 5.6 million cubic metres
of natural gas from Burma and, once completed, it will be Thailand's
largest power plant a with total production capacity of 3,645 megawatts (MW).

The project consists of two plants generating 735 MW each, and three
units producing 725 MW each.  In addition, another 3.96 million cubic
metres per day of gas from Burma will be used to fuel the 170MW power
plant belonging to Tri Energy, an IPP in Ratchaburi. The plant has been
operational since May.

PTT is also constructing the Ratchaburi-Wang Noi gas pipeline, to be
completed soon, to transfer gas from Burma to the Wang Noi power plant.
The PTT has also connected the eastern gas transmission network to its
western counterpart, to enhance the country's energy supply.