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Published on November 3, 2007

Starting next May, natural gas from the Malaysia-Thailand Joint Development Area will be used to supply a 730-megawatt combined-cycle power plant in Songkhla's Chana district, said PTT president Prasert Bunsumpun.

The agreement will substitute natural gas for bunker-oil imports of 920 million litres a year, or 23 billion litres over 25 years. This will save at least Bt7.2 billion per annum, or Bt180 billion throughout the period.

Egat governor Kraisri Karnasutra said after the contract signing that the power plant, which is under construction, would serve increasing electricity demand in southern Thailand. He said power demand in the lower South was particularly high.

"This combined-cycle power plant is necessary, as it will support economic expansion [in the South]. Meanwhile, it will also reduce the Kingdom's power-generating costs and reduce power imports from neighbouring countries to the tune of Bt2 billion a year or a total of Bt50.4 billion over 25 years," Kraisri said.

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

 The Nation