Thailand is making progress in its efforts to create a national gas grid.
State owned Petroleum Authority of Thailand (PTT) has approved construction of a $312 million gas pipeline from northeastern Thailand to the country's central plains.
The 24 in., 242 mile, 250 MMcfd line is to extend from Esso Exploration & Production Khorat's Nam Phong gas field in Khon Kaen province to tie into Thailand's main trunk line in Saraburi province.
The line's go-ahead hinges on whether Esso can confirm Nam Phong reserves of at least 1 tcf. If the field falls short of that level, efforts to utilize the gas in Khon Kaen province for power generation and industrial use will proceed in lieu of the pipeline project.
Meantime, the Electricity Generating Authority of Thailand (EGAT) has outlined plans to install combined cycle, gas fired power plants near Nam Phong field.
EGAT also gave a boost to a proposed extension of the Gulf of Thailand pipeline system to Thailand's southern peninsula with plans to install two combined cycle, gas fired power plants in Khanom district.
In addition, a Belgian feasibility study has buttressed support for PTT's proposal to expand Greater Bangkok's gas distribution network.
NAM PHONG LINE
The pipeline from Nam Phong field is to tie into PTT's existing trunk line, which runs through the central plains, along the eastern seaboard, and into the Gulf of Thailand to transport supplies from Unocal Thailand's fields.
Pipelaying is to begin in 1992 and be complete in 1993.
Esso is expected to confirm reserve estimates by 1991, after it completes its current exploration and development program on its 12,500 sq km Khorat concession holding Nam Phong field (OGJ, Apr. 2, p. 23). Production could start as early as November-December and is expected to peak at 250 MMcfd during the mid-1990s.
PTT consultants Bechtel Group and Chemsystem recommended the PTT-approved route over one from Khon Kaen via Prachin Buri province in the east to link with PTT's grid at EGAT's Ban Pakong gas fired power plant in Chachoengsao.
Bechtel/Chemsystem estimated the cost of the 260 mile route to Chachoengsao at 25-30% more than the route chosen.
NAM PHONG POWER PLANTS
To accommodate local utilization, EGAT plans to install three more combined cycle, gas fired power plants, each rated at more than 300,000 kw, near Nam Phong field.
Its first Nam Phong power plant, a three train complex rated at 359,000 kw, is scheduled to start up by yearend.
Plans call for the first of two 121,000 kw gas turbines to start up by December, the second in January 1991, and a heat recovery generator in January 1992.
Plans also call for Nam Phong gas to supply feedstock for a proposed urea/ammonia fertilizer plant, for industrial boiler fuel, and to provide a source of compressed natural gas for motor fuel PTT is to develop if the pipeline project proceeds.
EGAT last month was to take an option order for the second power plant with Mitsubishi Corp. Mitsubishi built and installed the first power plant at Nam Phong under a contract valued at about $88.9 million.
Contract for the second plant, of similar design and capacity, would be worth about $83.61 million.
EGAT plans to install the three additional plants in phases during 1991-95 to keep pace with Thailand's expected 20%/year growth in electrical power demand.
At the lower end of reserves estimates, Nam Phong could support two power plants, each of which consumes 60 MMcfd of gas, according to EGAT. But justification for a third and fourth plants would depend upon the 1.5 tcf reserve estimate being realized.
Initial Nam Phong production now is estimated to reach 90 MMcfd under the interim gas sales period vs. the 40 MMcfd Esso projected earlier.
SOUTHERN PENINSULA EXTENSION
EGAT's plans to install two 300,000 kw power plants at Khanom district in Nakhon Si Thammarat province buoys the economics of a $100 million subsea pipeline from Erawan field to the southern peninsula.
PTT had second thoughts about the project because of what it saw as a lack of big gas users in the southern region and the 264 mile gulf trunk line's capacity to absorb all Gulf of Thailand gas production (OGJ, Apr. 16, p. 24).
EGAT agreed to take 100-150 MMcfd from PTT to feed the two plants. They will be built in phases with the first starting up in 1994.
The pipeline to Khanom originally was planned as a 99 mile, 28-32 in. line. That could change as a result of a feasibility study on Thailand's gas grid under way by Fluor Daniel.
Completion of the Khanom line is timed to coincide with start-up of production from the B structure field in the southern gulf. Minister of the Prime Minister's Office Korn Tapparangsee said B structure production, to reach 150 MMcfd its first year, will feed the Khanom power plants.
Meantime, EGAT plans to convert its 150,000 kw oil fired power plant currently operating at Khanom to a gas fired plant in case more gas fired capacity is needed in the southern regions. It will take as much as 50 MMcfd.
BANGKOK GRID
A study by the Belgian gas engineering company Tractabel bolstered PTT's proposal to build a 300 MMcfd gas grid in the area surrounding Bangkok.
The project stumbled after negotiations between PTT and Tokyo Gas Group collapsed recently. PTT last year had broken a 2 year stalemate when it agreed in principle to grant Tokyo Gas a concession for gas distribution to industries near Bangkok.
Contract negotiations followed.
PTT's chief negotiator, Pratin Patanaporn, said talks broke down after Tokyo Gas was unable to meet a number of conditions centering on a gas price formula PTT proposed.
PTT wanted to sell the gas to Tokyo Gas at an equivalent of 80% of fuel oil prices and not lower than what PTT sells EGAT, its main customer.
Tractabel's study, sponsored by the Belgian government, sees the project viable at a 20% return on investment.
The study found the grid could supply Greater Bangkok industry and commercial/residential users as much as 300 MMcfd of domestic gas beyond 2000.
Tractabel projects gas demand under the initial stage of the project by 650 factories, 1,300 commercial users, and 100,000 households in 11 areas around Bangkok at about 80 MMcfd.
Future demand growth, paced by industrial consumption, could jump that to more than 200 MMcfd by 2000, the study concluded.
Investment of about $125.8 million would include a pipeline network ringing Bangkok with interconnecting spurs, some at 43 miles long and ranging from 16 to 28 in. in diameter, regulating stations, and users' hookups.
The project could be complete in 30 months, Tractabel said.
It would link with a spur from PTT's trunk line in the central plains.
FOLLOW-UP STUDY PLANNED
As a follow-up, the Belgian government has agreed to sponsor a predesign study of the system to be conducted by Tractabel this year.
With negotiations with Tokyo gas in disarray, PTT has not decided how to implement the project.
However, Tractabel officials have expressed an interest in participating in the project.
PTT envisions one of two approaches.
It would:
- Invest in the main ring line and sell the gas wholesale to a private company for resale to end users through spurs the private company would build, or:
- Establish a joint venture with a private company to invest in and operate the system.
The Thai government is pressing gas utilization in the southern seaboard to act as a catalyst for development of other industries, including a possible refinery and oil terminal.
At the same time, other sources to meet Thailand's soaring power demand growth, such as hydro, are stymied by long lead times and environmental opposition.
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