4 producers make NGV tanks cheaper

Four companies are ready to manufacture natural gas for vehicles (NGV) tanks in line with the Energy Ministry's plan to increase gas consumption to 20 per cent by 2012, up from 6 per cent today.

Energy Minister Poonpirom Liptapanlop yesterday said the four would have a combined production capacity of 790,000 tanks per year.

Their entry into the market will help bring down the price of tanks by Bt2,000 each and the cost of equipment installation by Bt5,000 a set.

She said it would also reduce the installation cost to Bt38,000-Bt55,000 a car from the current Bt50,000-Bt60,000.

The producers are Metal-mate, Natural Gas Cylinder (Thailand), Plus Lab and Korean businessman Han Hung Choi.

Metal-mate, which plans to produce 120,000 tanks per year, is in the process of importing the machines and was expected to be operational by the end of this year.

Natural Gas Cylinder (Thailand), which plans to produce 250,000 tanks a year, is establishing a plant. It was expected to begin operating next year.

Plus Lab, which should have a production capacity of 300,000 tanks a year while Han Hung Choi will make 120,000 tanks per year.

Both should start production next year.

Poonpirom said she had already devised a 2008-2012 plan for promoting NGV consumption.

The number of NGV vehicles is expected to rise to 333,000 units in the next five years from 133,376 this year.

The volume of NGV consumption should rise to 12,220 tonnes a day from 2,460 tonnes a day at present, while NGV outlets should increase to 740 stations by 2012 from 200 last month.

Poonpirom's plan to promote gas also hopes to see a rise in the number of trucks transporting NGV to 3,650 in 2012 from 900 today.

This will boost transported NGV to 16,450 tonnes a day from 5,465 tonnes.

Next year, the country is expected to have NGV gas stations in all provinces, while the government will spend Bt51.6 billion on building NGV gas pipelines.

The first route measuring 250 kilometres will run along the Asia superhighway. The second route comprises 170 kilometres and runs along the Mitrapab superhighway. The last route, which will be 270 kilometres, will run along the Petchkasem superhighway.

Construction of the NGV pipes in the first two routes is expected to be completed in 2011, while the third will be completed in 2012.

Thailand will also seek additional natural gas for domestic consumption and may have to import liquefied natural gas in 2010.