Thai-Malay pipeline, plant contractors to begin construction despite opposition

July 7, 2003
A showdown between the Thai government and opponents over the controversial Thai-Malay natural gas pipeline and associated gas separation plant has heated up as construction work at the site in Thailand's southern Songkhla Province begins in earnest.

By an OGJ correspondent

BANGKOK, July 7 -- A showdown between the Thai government and opponents over the controversial Thai-Malay natural gas pipeline and associated gas separation plant has heated up as construction work at the site in Thailand's southern Songkhla Province begins in earnest.

About 600 police recently took up position 500 m from Lan Hoy Siab in Songkhla's Chana district, where 400 opponents have been gathering as heavy construction equipment started to arrive.

Two permanent camps and several police checkpoints have been set up to guard the 360-acre site of the 425 MMcfd gas separation plant.

At one stage, police flew over the area in helicopters, mapping the project site so Trans Thai-Malaysia Ltd (TTM), the project sponsor and a joint venture of Petroleum Authority of Thailand (PTT PLC) and Petronas Carigali Sdn. Bhd (Petronas) can put up fences.

Meanwhile, the war of words between government and protest leaders has escalated following harsh comments by Prime Minister Thaksin Shinawatra. The prime minister criticized both pipeline opponents and human rights activists, provoking an angry response.

Thaksin challenged opponents of the controversial project, which has been delayed for a few years, to stand up and be counted. "Don't hide under people's skirts!" He said, "Then we will deal with you."

He accused some nongovernmental organizations of inciting people in Songkhla and causing problems for the country.

Despite strong resistance from local villagers, TTM Chief Executive Officer Permsak Shevawattananond vowed to press ahead with the construction, with the gas transmission line set for completion in early 2005, and the gas plant due to start up in mid-2005.

"The villagers' opposition will not stop the company from going ahead with construction, There's no reason why we should postpone construction," Shevawattananond told reporters.

Contractors ready
Contractors involved in the project are ready to begin construction. Saipem SPA of Italy soon will start laying the 277 km, 34-in. submarine pipeline that extends west to Thailand's coast at Songkhla from Cakerawala field on Block A-18 in Thailand-Malaysia's Joint Development Area in the South China Sea.

Nacap Nederland BV of the Netherlands also is poised to lay the onshore section, an 89 km, 36-in.line from Songkhla to the Thai-Malay border at Sadao and an 8 km inland spur to the northern Malaysian state of Perlis.

ILVA SPA of Italy is prepared to deliver the steel pipe to both contractors.

And South Korea's Samsung Engineering Co. Ltd. will be moving in to build the gas separation plant as soon as site preparation in Songkhla—now underway—is complete.

Development of Cakerawala gas production facilities, consisting of three wellhead platforms, a central processing platform, living quarters, a riser compressor platform, and floating storage, has been completed and ready to deliver gas since last September.

The field is capable of delivering 390 MMcfd. of gas for a plateau period of 20 years. Initial gas will go to Malaysia, which opted to take the gas ahead of Thailand.

Abuse charges answered
Meanwhile, the National Human Rights Commission said the use of force by police to disperse demonstrators against the Thai-Malay gas pipeline in Songkhla in December was disproportionate and unjust (OGJ Online Dec 23, 2002).

Thaksin took news editors to task for what he said were misleading headlines that wrongly portrayed the divisions between his government and opponents of the project. Similarly, project opponents accused the media of trying to worsen relations between villagers and the government.