Deputy PM Kosit Panpiemras has  ordered the Energy Ministry to accelerate spending its fiscal-2007 budget, worth more than Bt270 billion, in order to stimulate the economy.

Speaking after meeting with Energy Minister Piyasvasti Amranand yesterday, Kosit sought an assurance from the Energy Ministry that it would spend Bt274.93 billion as planned.

A total of Bt88 billion will go to three electricity-generating units of the Electricity Generating Authority of Thailand and some private units. Of that, Bt27 billion will be spent in the first half of this year, the rest in the second half.

PTT and its subsidiaries also plan a combined investment of Bt186.93 billion, which is expected to proceed after the Map Ta Phut Industrial Estate's pollution problems are sorted out.

PTT's new investment projects will be located in Map Ta Phut.

The Energy Ministry has been ordered to make large investments to inject money into the Kingdom's sluggish economy, so as to offset the slow-down in new investment from the private sector.

Kosit said the government would also promote exports of ethanol to ease the domestic surplus of ethanol supply. The government will work with the Industry, Energy and Finance ministries to facilitate ethanol exports. In the medium term, the government will work to promote domestic ethanol use.

As for investment in the South to promote the economy there, the Energy Ministry has proposed four main projects.

First, PTT will invest in a project to generate electricity from wind power in Pattani province.

Second, a hydropower project will be developed from small reservoirs in Waeng district in Narathiwat and Bannang Sata district in Yala.

Third, the Energy Ministry will engage in a project to expand palm-oil plantations to promote biodiesel.

And fourth, the government will implement a solar-energy product for use in hospitals.

Piyasvasti said in the next five years, the energy-business group would spend a combined total of Bt1.753 trillion. The projects include a petroleum exploration and production project worth Bt690 billion; and a project for a natural-gas pipeline and liquefied natural gas and natural gas for vehicles worth a combined Bt209.651 billion.

Energy Ministry permanent secretary Pornchai Rujiprapha said his ministry was discussing a plan with the Agriculture Ministry to expand oil-palm plantations in the three deep-South provinces.

PTT president Prasert Bunsumpun said that after discussions with the Energy Ministry, PTT was now working on a pollution-control plan. Therefore, plant expansion in Map Ta Phut should proceed soon, because the new plants would not be likely to cause more pollution in the area.