Gas rig builders face steel crunch amid import curbs

This restriction has delayed the construction of rigs in the Gulf of Thailand, according to a source at the Energy Ministry.  Contractors have complained to the ministry, saying they have been forced to delay construction of the rigs for petroleum firms, who are looking to boost production capacity to support strong demand, the source said. 

The problem persists despite an Industry Ministry policy of relaxing rules on imports of the steel in response to contractors’ complaints that the process was too difficult, he said. 

Earlier, the Energy Ministry’s Mineral Fuels Department reported that production capacity of natural gas from the Gulf of Thailand would increase from 3.172 billion cubic feet per day in 2011 to 3.441 billion this year and to 3.602 billion in the years 2013 through 2017. Production capacity is then expected to fall to 3.352 billion cubic feet per day in 2018, 3.202 billion in 2019 and 2.880 billion in the years 2020 through 2030.

The delay in constructing rigs would disrupt this production timetable, the Energy Ministry source.