Bangkok--Feb 2--PTT
H.E. Mr. Viset Choopiban, Minister of Energy, today presided over the signing ceremony of a gas sales agreement for the Nam Phong Power Plant between EGAT Plc and PTT Plc.
Representing the two parties were Mr. Kraisi Karnasuta, EGAT President, and Mr. Prasert Bunsumpun, PTT President.
According to the energy minister, this signing represents a milestone in the power development of the Northeast since the natural gas in question will replace diesel in fueling the power plant in Khon Kaen and lower the power production cost. Besides, the use of indigenous gas will save the foreign-currency payment otherwise needed for importing oil, which is getting increasingly costly with current world oil prices. “Above all, it facilitates development for this region’s power and industrial sectors,” said the minister.
Mr. Prasert said, “The plant will run on both Nam Phong gas and Phu Horm gas, the latter of which was recently procured by PTT.” A gas sales agreement had been signed by PTT and the producers of Phu Horm gas last July. The combined gas supply from both fields is expected to average 108 million cubic feet per day. “Under the 16-year contract (2006-2021), supply will begin in December this year and, by the end of the contract, cumulative supply will have been worth 72 billion baht,” he added.
“As the agency charged with the security of national energy supply, we ensure adequate and timely gas supply at low costs. Besides continually sourcing new gas to meet the domestic demand, we keep expanding gas transmission capacity in both the west and the east to provide greater flexibility in adding supply volume and sources,” remarked the PTT President. “PTT supports the government policy of promoting the use of indigenous energy resources in the power, industrial, and transport sectors to lessen the impact of high oil prices,” he concluded.
“The 355-megawatt (MW) plant came on stream in December 1990 and in March 1993 its capacity was doubled to 710 MW to meet the region’s growing demand for power,” said Mr. Kraisi. “With diminishing gas supply from the Nam Phong field, EGAT had to divert power supply from the North and the Central Region to the Northeast. Fortunately, new gas in commercial quantities was discovered at Phu Horm in Udon Thani. Today’s signing between PTT and EGAT is therefore crucial to the security of energy supply to the Northeast,” noted the EGAT President. Once the new gas comes in, the plant will soon be running at full capacity and, in the process, save foreign-currency payment and promote new ventures related to natural gas, electricity, and other downstream businesses in the region — apart from job creation and technological development.
For additional information, contact:
Public Relations Division, Gas Business Group, PTT Plc
Tel. 0-2537-3217
Fax 0-2537-3211 End.