Budget hiked for pipeline plan
PTT has increased its investment budget for the third-phase natural gas pipeline project by Bt28 billion to a total of Bt185 billion to reflect the rising costs of construction materials.
Chitrapongse Kwangsukstith, PTT senior executive vice president, said yesterday that the third-phase master plan has been submitted to the Energy Ministry. After Cabinet approval, the Energy Ministry will use the figures in recalculating gas transmission rates that all gas users, including all power users, will be charged. The Cabinet had approved an investment budget of Bt157 billion in 2005. The budget could have gone up by Bt40 billion, but PTT had signed advance agreements with some contractors in 2003-2004, he said. Steel has doubled in price from US$700 (Bt23,800) per tonne then to about $1,500-$1,700 now. The construction cost has also risen from about $300,000-$400,000 per kilometre to $1 million. The investment is in line with growing demand for natural gas, particularly for generating electricity. Pipelines will be lengthened and enlarged to transport more natural gas from various sources to power and steel plants.
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