Bangkok--8 Dec--PTT
8 December 2006, Four Seasons Hotel — In a move to strengthen national energy security, respond to ever-growing demand, and ease the domestic impact of volatile world oil prices, PTT is today signing an agreement to supply to the power sector additional volumes of natural gas over the next decade.
Dr. Piyasvasti Amranand, Minister of Energy, today presided over the signing ceremony of a supplementary gas sale agreement (No. 2) between PTT Plc and the Electricity Generating Authority of Thailand (EGAT). The parties were represented by Mr. Prasert Bunsumpun, PTT President, and Mr. Kraisi Karnasuta, EGAT Governor. The gas supply in question will be used for power generation at the Bangpakong and South Bangkok combined-cycle plants.
Under this agreement, said Mr. Prasert, PTT would maintain its gas delivery to EGAT at 960 million standard cubic feet per day (MMSCFD) through 2015, so that both plants might be assured of their fuel supply. Under the previous agreement, the supply would drop from this level to 910 MMSCFD in 2007, 850 MMSCFD in 2008, 650 MMSCFD in 2014, and 540 MMSCFD in 2015.
“This agreement benefits Thailand in several ways. First, it will lower the volume of fuel oil used for power generation together with the environmental impact accompanying its combustion. Second, it will facilitate greater pipeline network utilization on the western side through the additional deliverability of the Sai Noi — South Bangkok portion, which will also reach future power plants,” said Mr. Prasert, “Ultimately, this means greater supply stability and security for Thailand’s power generation.”
Minister Piyasvasti said, “Today’s signing is critical to national energy security as it guarantees that, for the next decade, EGAT will be able to generate sufficient electrical power thanks to PTT’s constant efforts to secure additional natural gas supplies for domestic consumption. Above all, Thailand will be able to ease foreign-exchange payment for crude oil imports caused by price volatility in the world market.”
It is the government’s policy to promote indigenous energy for consumption in the power, industrial, and transport sectors. Besides its accessibility, natural gas is a clean form of energy with minimal impact on the environment.
For additional information, call the Public Relations Section
Exploration, Production, and Gas Business Group
PTT Plc
Tel. 0-2537-3217
Fax 0-2537-3211