By OGJ editors
HOUSTON, Dec. 2 -- Demand for natural gas in Thailand is expected to continue to track upward through 2015 at "a health average annual growth rate of 5.4%," according to a report released last month by FACTS Inc.
A majority of this demand will stem from the electric power sector. Gas-fired plants accounted for about 69% of Thailand's power generation in 2002, said Shahriar Fesharaki, a FACTS senior researcher.
Fesharaki reported, however, that the message has been mixed from the Thai government about pushing toward making natural gas a larger portion of the country's energy makeup. "Certain factions of the Thai government have pushed for reduced dependence on natural gas and an increase in coal imports for power generation as a way of diversifying fuel inputs," he noted. "However, new coal-fired power plants have faced stiff opposition amongst the general population and in 2003 two of the largest planned [independent power producers] have been switched from coal to gas."
Currently, Thailand is supplied with gas through three major pipelines: two from fields within the country and one from fields in Myanmar, the latter of which supplies about 25% of Thailand's gas demand. Another gas transmission line from the Gulf of Thailand is expected to be operational by 2006.
"Due to the lackluster demand in the past few years, the Petroleum Authority of Thailand (PTT) had been paying for the full contracted volumes of gas from the Yadana consortium in Myanmar and not taking the full volumes," Fesharaki stated, adding, "Recently, PTT has been in the process of 'making up' volumes that it had paid for."
Also, the Malaysia-Thailand joint development project should be completed by mid-2005, according to Trans Thai Malaysia Co., Fesharaki noted. The joint venture partners are yet to secure financing for the project, he said.
The development project was slated to begin in September 2002, but faced a number of delays, Fesharaki said, "because of strong environmental protests by villagers in southern Thailand."
The contract for the development calls for an initial 350 MMscfd of processed gas to be sold to Malaysia for 5 years, after which, about 450 MMscfd of gas would be sold to Thailand for the next 5 years, he explained.
