PTT supplies gas to EGAT

The supply contract was signed on Friday.

 Starting May 2008, natural gas from the Malaysia Thailand Joint Development Area (JDA) will be used to supply the 730 megawatt combined-cycle power plant in Chana district in Songkhla province, said PTT President Prasert Bunsumpun.

 The agreement wil substitue bunker oil import of 920 million litres a year or 23,000 million litres througout the period. This will save the country's oil imports of at least Bt7.2 billion per annum or Bt180 billion througout the 25-year period.

 EGAT Governor Kraisri Karnasuta said after the contract signing that the power plant, yet to be built, will serve increasing electricity demand in southern Thailand.

 He noted that power demand in the lower South is higher than supply in the area, he said.

 "This combined cycle power plant is necessary as it will support the economic expansion. Meanwhile, this will also reduce the Kingdom's power generating cost and reduce power imports from neigbouring countries, which are worth Bt2 billion a year or a total of Bt50.4 billion throughout 25 years," Kraisri said.

 Energy Minister Piyasvasti Amranand who witnessed the contract signing said that the gas supply contract would mean a more stable power supply to the country.

- The Nation