BANGKOK, Oct. 8 -- Myanmar's cabinet has endorsed amendments easing terms in the long-term contract for natural gas sales to Thailand from Yetagun field in Myanmar's Gulf of Martaban.
The 2.92 tcf Yetagun gas-condensate field is 400 km south of Yangon (OGJ Online, Aug, 21, 2001).
The contract amendments approval followed protracted negotiations between a Yetagun field developing group led by Premier Oil PLC of the UK and the outgoing Thai Industry Minister Suriya Jungrungreangkit, who acted on behalf of the Thailand state-owned PTT PLC, the gas buyer (OGJ Online, December 11, 2000).
The amendments involve certain adjustments in the gas pricing structure and deferment of the schedule to raise the daily contract quantity.
The pact also would include a reduction in the minimum amount of gas that PTT must buy from Yetagun, reducing the take-or-pay obligation under which the gas is paid for regardless of whether the gas volume is taken.
The original agreement required PTT to buy a minimum of 200 MMcfd, before rising to 260 MMcfd in 2004, and up to 400 MMcfd in the subsequent period.
Suriya said PTT and Yetagun group soon plan to sign an amended accord, adding the amendments would slash the country's energy bills by "billions of baht."
Myanmar has agreed to reduce gas prices for additional volumes bought by Thailand during the stipulated contract's minimum period.