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Yadana (r)



BANGKOK POST October6, 1999


Ratchaburi power plant trials begin
Problems cause 14-month delay


Boonsong Kositchotethana


The Electricity Generating Authority of Thailand has started trial 
operations of the Ratchaburi powerhouse fueled by Burmese gas.

The first 200-megawatt gas turbine was started up on September 29, 14 months 
behind schedule because of construction delays.

When in full operation the plant will be the biggest power generator in 
Southeast Asia.

Senior Egat officials said yesterday the first gas turbine would start 
supplying the national grid in December, with the subsequent five gas 
turbines, each of 200 megawatts capacity, coming on line in the following 
months.

The coming onstream of the five other turbines is set for January, April, 
May, July and August.

Installation of the initial units of the power station, about 120 kilometres 
southwest of Bangkok, has been delayed by technical problems involving the 
contractors-Japan's Mitsui and General Electric of the United States.

Egat officials have said the delay stemmed from Mitsui-GE's putting in a low 
bid price for the Ratchaburi supply contract. To keep within their price 
range they have bought components from Third World production bases. 
According to Egat, the result is that the quality of the products does not 
meet the specifications required by the power authority. The Ratchaburi 
power station was supposed to come on line in July 1998, at the same time as 
the completion of the gas pipeline laid from the Yadana gas field, in 
Burma's Gulf of Martaban, to the power station. The delays meant that the 
Petroleum Authority of Thailand failed to take delivery of the Burmese gas, 
sparking a dispute over gas payment between the state-owned PTT and the 
Yadana developers led by Total-Fina. The dispute has been resolved through 
rescheduling of payments and concessions by both sides.

The dispute strained the relations between Thailand and cash-strapped Burma, 
which is desperate for revenue from the Yadana gas sale.

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