PTT can sign natural-gas MoU with Burma

The block can produce 300 million cubic feet per day. Of that, 240 million cubic feet will be supplied to Thailand and the rest used in Burma.

The MoU is worth more than US$1 billion (Bt33.29 billion) and will see a supply of gas for 25-30 years starting in 2013, said Energy Minister Wannarat Charnnukul.

Wannarat yesterday chaired a meeting of the National Energy Policy Committee, which endorsed a five-year supply plan. Demand is expected to increase to 5.142 billion cfpd by 2015.

The plan will help alleviate the Kingdom's electricity consumption of 6,890 megawatts, as per a second revision of the 2007 power-development plan (PDP).

Natural-gas demand is forecast to grow 6 per cent a year overall, with annual demand from power plants to expand 3.3 per cent, the industrial sector 11 per cent and the transportation sector 23 per cent.

The natural-gas supply plan is scheduled to be ready early next year.

The committee yesterday also approved a tariff MoU between the Electricity Generating Authority of Thailand (Egat) and Laos, aimed at purchasing electricity from the Nam Nguem 3 power plant in that country.

"We plan to collect a fee of Bt2.65 per unit of electricity, but Egat must negotiate the MoU with all of the stakeholders again," Wannarat said.

The Nam Nguem 3 project has a capacity of 440MW and will start operations in 2017. There are four stakeholders: GMS Laos (27 per cent), Marubeni (25 per cent), Ratchaburi Electricity Generating Holding (25 per cent) and the Lao government (23 per cent).

The PTT Group will have to shoulder a Bt20-billion burden for liquefied petroleum gas and natural gas for vehicles next year.

Of that amount, Bt15 billion will be spent on imports of LPG and the rest for the loss incurred in maintaining the retail NGV price at Bt8.50 a kilogram.

President and CEO Prasert Bunsumpun yesterday said domestic demand for LPG was expected to increase next year in line with the Kingdom's economic growth, or 3 per cent.

"Isn't it about time the government considered adjusting fuel prices to reflect the real cost?" said Prasert, adding that crude oil was expected to be quoted at US$70 to $80 (Bt2,300 to Bt2,700) per barrel next year.

Oil demand will increase to 1 million barrels per day, or 90 per cent of the Kingdom's refinery capacity.

The 3-per-cent rise in LPG consumption will have to be met by imports.

The petrochemical industry uses 100,000bpd of oil, the export sector 100,000-200,000bpd and domestic consumption 700,000bpd.