PTT says govt at fault over limited NGV access
PTT is blaming government delays for its failure to expand the number of stations offering natural gas for vehicles (NGV).
Originally, it planned to have 200 NGV stations operating by the end of the year, but currently there are only 78. Senior executive vice president Chitrapongse Kwangsukstith said the problem lay with the government's remaining subsidy on liquefied petroleum gas (LPG)."The government originally planned to scrap the LPG subsidy in July 2005, but the plan was delayed," Chitrapongse said yesterday. "The latest attempt to end the subsidy will be made at the end of this year." Due to the subsidy, LPG users are still paying only US$315 (Bt11,200) per tonne, compared with the global price of $486 per tonne. The retail price of LPG is now Bt16.81 per kilogram, which requires the Oil Fund and refineries to shoulder the remaining cost of Bt1.35 per kg. This is about 30 per cent lower than the price of conventional fuels and natural gas. The subsidy has encouraged taxi companies to power their cars with LPG, and there are now about 50,000 LPG-fuelled taxis in Bangkok and the surrounding area. Private cars have also been switching to LPG, because of high fuel prices. However, there is currently no incentive to switch these vehicles from LPG to NGV. Chitrapongse said that because of this, PTT had been unable to expand the number of NGV stations as planned. PTT has found it difficult to persuade petrol- and LPG-station operators to switch to selling NGV, because of the slow increase in the number of NGV vehicles. Chitrapongse said the number of NGV stations might expand much faster once the natural-gas pipeline network was completed, as this would allow a more cost-effective means of transportation than truck shipment. "We understand that vehicle owners prefer to wait until the number of NGV stations is higher before switching to natural gas," he said. If the LPG subsidy is scrapped as planned, PTT may achieve its goal of opening 200 NGV stations in next year's first quarter, he said. Meanwhile, PTT subsidiary PTT Exploration and Production (PTTEP) yesterday announced it had won concessions for two petroleum blocks in Egypt. Egyptian Natural Gas Holding (EGAS) has awarded blocks 2 and 8 to a consortium consisting of PTTEP, Sipetrol International, Edison International and Centrica Energy as part of its 2006 international bidding round. Block 2 - the Rommana block - located onshore in Sinai, northeastern Egypt, covers 6,184 square kilometres. Block 8 - the Sidi Adb El Rahman offshore block - covers 4,294 square kilometres. Edison will hold a 40-per-cent stake, while PTTEP and Sipetrol will each own 30 per cent. WATCHARAPONG THONGRUNG, THE Nation
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