Thailand has suspended a number of major gas utilization projects based on imported gas because of delays or shortfalls in projected supply arrangements.
The government dropped a project to transport gas from Malaysia via pipeline to a huge power plant in southern Thailand, citing a 50% shortfall in expected gas deliveries.
Meantime, the state utility Electricity Generating Authority of Thailand (EGAT) has shelved all plans for power plants based on Myanmar natural gas to be developed by multinational companies in the Gulf of Martaban. EGAT cited longer lead times than expected and other uncertainties.
MALAYSIAN SHORTFALL
Petroleum Authority of Thailand (PTT) dropped plans to lay an 800-900 km pipeline from the Malaysian border to EGAT's proposed 1.8 million kw power plant at Bang Sa Phan, Prachuab Khiri Khan, that would be fed by Malaysian gas.
Malaysia's state owned Petronas told PTT it could spare only half the 300 MMcfd of gas from its onshore gas grid in Peninsular Malaysia that Thai officials sought.
PTT then scrapped its pipeline project, claiming the substantial investment involved would not be justified based on projected gas volumes to be delivered.
EGAT General Manager Somboon Manenava said as a consequence, the power plant project will not proceed. An alterative plan, to build the power plant near the Thai-Malay border, is not economic because it would entail building a costly power transmission line to Thailand's Central Plains, where the electricity is needed.
In addition, Thai officials noted Malaysia's booming economy has boosted demand for electrical power, and energy planners in Kuala Lumpur are redirecting domestic gas supplies to power plants proposed for northern Peninsular Malaysia. Malaysia is expanding its natural gas grid on the peninsula, where an industrial/commercial boom is under way.
For the near term, EGAT is shifting its emphasis toward installing a number of gas fired power plants in the Central Plains, such as those planned at Wang Noi and Samut Prakan to substitute for the Malay gas fired power plant that was originally scheduled to start up in 1995-96.
Somboon also sees the utility relying more on domestic natural gas from the Gulf of Thailand, mainly from Unocal Corp. operated fields and giant Bongkot field under development by a Total group.
Longer term, there is the prospect that EGAT may obtain gas from the Thai-Malay joint development area (JDA) in the southernmost Gulf of Thailand. The 7,300 sq km JDA, in gas prone, disputed territorial waters, is eyed for joint development by the two countries. Because there are no development plans for JDA gas fields at present, EGAT has no specific power plants planned to use the gas, which is not likely to go on stream before the turn of the century.
MYANMAR DELAYS
EGAT's Somboon confirmed that the utility has replaced proposed combined cycle power plants fed by Myanmar gas on its priority list with conventional, dual fueled thermal generators fed by fuel oil gas.
The utility cited unresolved negotiations over Gulf of Martaban gas, unclear timing for developing the gas fields and laying a pipeline to Thailand, and rising protests against the project by international lobbying groups as factors in its decision.
One report placed the price of Martaban gas to EGAT at $4-5/MMBTU, which the utility found too costly. Thailand had hoped to ship 500 MMcfd of gas from fields discovered by Total and Texaco Inc, on Gulf of Martaban tracts.
PTT continues to negotiate Martaban gas prices with Myanmar officials and production sharing contractor Total, said PT-r Gov. Luen Krisnakri.
PTT officials said the state petroleum company wants to settle the gas price issue before wrapping up PTT's proposed acquisition of a 30% interest in Total's 26,140 sq km M-5 and M-6 tracts in the Gulf of Martaban.
EGAT had planned to install as many as four combined cycle, 700,000 kw power plants in Thailand's western and central regions. They were scheduled to go on stream beginning in 1996 to help EGAT meet the country's double digit annual growth in electrical power demand.
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