PTT to press ahead with Bt12-bn second phase of LNG
Continued uncertainty over plans for both nuclear and coal-fired power plants has persuaded PTT to go ahead with the next phase of establishing a liquefied-natural-gas (LNG) terminal to serve rising energy demand in the domestic market.
The second phase, which will cost US$400 million (Bt12 billion), is an extension of the company's first-phase project in Map Ta Phut, Rayong, covering 460 rai (73.6 hectares). The second-phase project will comprise one LNG tank and a port to facilitate transport. If approved by the Energy Ministry, PTT will start construction next year, with operations scheduled to commence by 2016.
The company yesterday officially opened two major facilities: its sixth separation plant to feed 800 million cubic feet per day of natural gas; and its first-phase LNG terminal in Map Ta Phut. The LNG terminal cost $900 million and has an annual capacity of 5 million tonnes. The site includes two LNG storage tanks with a capacity of 160,000 cubic metres each, and a port with LNG vessel capacity of between 125,000 and 264,000 cubic metres.
Upon completion of the planned second phase, the company will achieve its goal of 10 million tonnes of LNG production, or 1,400 cubic feet per day.
Prasert Bunsumpun, president and chief executive officer of the company, said yesterday that PTT had decided to move forward on conducting a feasibility study for second-phase construction as domestic demand was growing. It had taken into consideration the fact that the establishment of nuclear power plants and the further development of coal-fired power plants were very much in the balance, he said.
Moreover, the official policy concerning oil exploration in the overlapping area with Cambodia in the Gulf of Thailand is still alive. The deal is mainly dependent on the political relationship between Bangkok and Phnom Penh, he added.
"Even with an agreement, the project would take at least five to six years before it could produce natural gas," Prasert said.
At yesterday's opening ceremony for PTT's latest facilities in Map Ta Phut, Energy Minister Pichai Naripthaphan said that if the overlapping-area problem with Cambodia were to be resolved, it would further delay both nuclear and coal-fired projects because Thailand would have a new source of gas.
In addition, while the government policy to float the price of liquefied petroleum gas remains unchanged, the liberalised price of LPG for household use has not been finalised, he said.
