Bangkok--Jan 17--PTTEP
In another step, in support of the drive to conserve Thailand’s energy resources, PTT Exploration and Production Public Company Limited (PTTEP) has signed an agreement with Company Limited (Ratchaburi Energy) to sell Flare Gas to Ratchaburi Energy, who will use the gas to produce electricity. The Flare Gas will replace fuel oils currently used and in so doing reduce the bill for expensive oil imports saving the nation more than Baht 45 million per year.
On January 17, 2006, Mr. Maroot Mrigadat, (มารุต มฤคทัต) President of PTT Exploration and Production Public Company Limited (PTTEP) and PTTEP Siam Limited a subsidiary of PTTEP, signed a Gas Sales Agreement (GSA) with Mr.Thawat Vimolsarawong, Managing Director of Ratchaburi Energy. The agreement will see Flare Gas produced from a remote location called Pratu Tao-A to be used to generate electricity. The Pratu Tao-A remote location is situated in the S1 or Sirikit oil field in Sukhothai province and is operated by PTTEP Siam Limited.
This partnership came about in response to the idea to capitalize fully on the nation’s energy resources. PTTEP in conjunction with Ratchaburi Energy searched for an appropriate technology that would be able to harness the Flare Gas to generate electricity, before arriving at the solution of using a gas engine to generate electricity. For the initial start up period, PTTEP Siam will send gas to Ratchaburi Energy at 0.4 million standard cubic feet per day (MMSCFD), which will serve a Gas Engine with an installed capacity of 2 Megawatts for a total of 8 years. The project is to start in the fourth quarter of 2006.
Mr. Maroot stated that, “PTTEP was delighted to be collaborating with Ratchaburi Energy Company Limited towards this initiative in support of the government’s policy for the conservation of energy and the use of Thailand’s own natural resources to deliver maximum benefits. PTTEP had long been trying to develop the production technology needed that would make it possible to utilize the Flare Gas instead of burning it off as was previously the case.” He added “This project delivers the multiple benefits of capitalizing on the full worth of Thailand’s energy resources by using gas produced from the remote location to produce electricity. Whilst simultaneously providing an alternative fuel to use to generate electricity and creating a saving of Baht 45 million per year which would have been used on importing fuel for the production of electricity.”
Mr.Thawat Vimolsarawong said that, “Ratchaburi Energy Company Limited, a subsidiary of Ratchaburi Electricity Generating Holding PCL., are pleased to be able to collaborate with PTTEP and PTTEP Siam in the development of this project, initiated in response to the Government’s policy in encouraging the utilization of Thailand’s energy resources to deliver maximum benefits. The 2 Megawatts power station that is to be constructed eventually produce approximately 12 million kWh of energy per year.” He added, “This project will give additional value to the nation’s resources whilst assuring the local population of a clean and reliable supply of electricity.” Mr. Thawat went on to end by saying “The signing of this GSA is not only a success for both of the companies involved but it is also a significant step in the development of alternative fuels application for the country.”
For more information, please contact
Sidhichai Jayant/Tongchit Pongorapin/ Jakra Srinaganand
External Relations Department,
Tel. +66 (02) 537 4592, 537 4587 End.