Caretaker Energy Minister Viset Choopiban said at a seminar entitled "Alternative fuel, the future of Thailand" yesterday that the country had come to rely too much on natural gas and oil, which is risky to energy stability.

He said the upcoming bidding for new independent power plants would help increase the number of coal-driven power plants as well as those using other kinds of fuel.

"In a 10-year plan, the ministry targets an increase of power plants using coal as fuel. Coal should provide 25 per cent of all power in Thailand," said Viset.

Sahai Rakyao, senior executive vice president responsible for fuel at the Electricity Generating Authority of Thailand (Egat), said the country's energy now depended on natural gas (70 per cent), coal (15 per cent), oil (7 per cent), hydropower (5 per cent), with other fuels accounting for the remaining 3 per cent.

"Meanwhile, the world energy trend has shifted to consuming coal," said Sahai.

During 2002-2004, global energy consumption from coal increased by 56 per cent, while natural gas rose by 9.1 per cent.

Sahai said Thailand should study overseas technologies that create clean coal power.

Chaiwat Choorit, PTT's senior executive vice president for oil business, said that over the next 10 to 20 years, oil would have to be considered the main energy source, though its share would fall.

He said various studies, including one by PTT, suggested that world demand for energy would increase 2 per cent per year on average.

From 2004 to 2025, global oil consumption is predicted to increase from 214 million barrels per day (38.7 per cent of total energy supply) to 322 million barrels per day (37.8 per cent). The figures reflect the need for oil due to its convenience, relatively safe transport and storage, as well as oil posing fewer environmental problems than other fuels except natural gas.

Thailand burns oil to provide 61 per cent of its energy consumption - high by world standards - accounting for Bt1.23 billion or 17 per cent of gross domestic product.

Chaiwat said oil was still important to the country, but alternative fuels such as gasohol, bio-diesel, and NGV (natural gas for vehicles) are being sought.

"Oil prices are still on the rise and this will continue," he said.

PTT will today lift its retail prices at petrol stations by 40 satang. Octane 95 is quoted at Bt29.79 per litre and octane 91 is Bt28.99. Diesel is on offer for Bt27.14.

Chaiwat said from January to May, PTT had carried the burden of subsidising retail prices to the tune of Bt2.4 billion, and this is expected to reach Bt4 billion for the entire year.

Watcharapong Thongrung

The Nation