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Published on March 1, 2008

Committee member Chongchet Boonkerd said such consideration needed to be thorough, given that the new fee would be in place for years and influence the fuel tariff (FT).

"The natural-gas transmission fee is different from the FT. There is a clear formula for calculating the FT," he said.

Chairman Direk Lawansiri said the public might be invited to express their opinions via the www.eppo.go.th website or at a conference. The public hearing was originally scheduled for one week ending yesterday.

It is estimated that each Bt1 increase in the transmission fee pushes the FT up 0.6 satang a unit. PTT has proposed a hike of Bt2.0585, which would translate into a 1.2-satang-per-unit increase in the FT.

The FT is revised every four months, taking into account the actual cost of fuel in generating electricity. The tariff for the February-May period is 68.86 satang per unit.

PTT has proposed an increase of Bt1.1017 for delivery through a pipeline off the coast from Rayong, from Bt7.9365 per million British thermal units to Bt9.0382. It has also proposed raising its fee for delivery through onshore pipelines by 95.68 satang, from Bt11.4664 per million BTUs to Bt12.4232.

The natural-gas transmission fee is adjustable ahead of investment in new pipelines. The proposed hike won Energy Ministry and National Energy Policy Board approval during the previous government, because PTT will invest in new pipelines.

The new gas pipelines - part of the third pipeline master plan - include one to supply natural gas to the power plant in Songkhla, a connecting section from the Phuhom Field to the Namphong pipeline and life extensions of pipelines more than 40 years old.

The average return of all pipelines is set at 12.5 per cent per annum.

Energy Reporters

The Nation