THE NATION: PTT seeks cheaper ga

[suriya@xxxxxxxxxxxx]

Business 

      PTT seeks cheaper gas
      from Yadana 

      The Petroleum Authority of Thailand (PTT)
      is negotiating with the Burmese
      government for a 10 per cent discount for
      the additional purchase of gas from the
      Yadana field. 

      This is expected to help Thailand cut its
      costs by Bt120 billion over a 20-year
      period, a senior executive said. 

      Despite the present economic downturn
      and protests over the purchase of gas from
      Burma, Piti said PTT is planning to buy 400
      million cubic feet per day (mmcfd) of
      additional gas from the Yadana field since
      the developers -- Unocal, Total and PTT
      Exploration and Production Plc -- have
      reported that their volume of reserves have
      increased from 5.6 trillion cubic feet to 9
      trillion cubic feet. 

      Piti said PTT requires the additional gas to
      keep up with future demand from the
      domestic market and to comply with a
      government directive to substitute diesel
      and fuel oil with natural gas to preserve the
      environment. 

      However, considering the fall in the demand
      of energy, Piti said the additional gas
      purchase from Yadana was not urgent.
      Already, the delay of the Ratchaburi power
      plant project has reduced the demand of
      gas from Yadana to only 325mmcfd as
      against the contracted figure of 525 mmcfd.

      Piti said PTT is negotiating with the
      Burmese authorities to lower the price of
      the additional gas it seeks from Yadana by
      at least 10 per cent from the current US$3
      per million BTU (British Thermal Unit) in the
      present contract. 

      If the negotiations are successful, Thailand
      stands to save Bt120 billion on the
      purchase of gas over the contractual
      period. 

      Meanwhile, PTT will spend an additional
      $40 million to speed up the construction of
      the pipeline from Ban I-tong to the
      Rachaburi power plant. 

      Thirty kilometres of the 260 km pipeline
      remain to be constructed and the PTT has
      two months to complete it. 

      Of the additional budget, US$27 million will
      be used to pay workers who will be
      employed throughout the day and $13
      million will be used for reducing
      construction space in rich forest areas. 

      Piti said PTT is ready to allow
      environmental groups to supervise the
      construction. 

      BY SUPUNNABUl SUWANNAKIJ and
      WATCHARAPONG THONGRUNG 

      The Nation