BRITISH GAS MULLING EXPANSION OF THAI COGENERATION UNIT

March 16, 1992
British Gas plc and Thai Olefins Co. are considering plans to hike capacity of the proposed $303 million natural gas fired cogeneration plant to provide electric power and steam to Thailand's second major petrochemical complex (NPC II). The proposal to increase capacity from 160,000 kw came with an expression of interest from Royal Dutch Shell Group and Caltex Petroleum Corp. to buy power and steam for their proposed refineries to be built near the Mab Ta Phud petrochemical complex (OGJ,

British Gas plc and Thai Olefins Co. are considering plans to hike capacity of the proposed $303 million natural gas fired cogeneration plant to provide electric power and steam to Thailand's second major petrochemical complex (NPC II).

The proposal to increase capacity from 160,000 kw came with an expression of interest from Royal Dutch Shell Group and Caltex Petroleum Corp. to buy power and steam for their proposed refineries to be built near the Mab Ta Phud petrochemical complex (OGJ, Jan. 27, p. 40).

A world scale aromatics project planned for the Mab Ta Phud area would be another potential customer for the cogeneration complex.

TOC Pres. Pala Sookawesh said the three projects together could result in added demand of 100,000 kw.

Negotiations between BG and TOC for the exclusive right to build and operate the plant and sell its power and steam to NPC II and downstream units are still under way.

The Thai government last fall tentatively approved British Gas's proposal over a competing bid by Mission Energy Co., Bakersfield, Calif. (OGJ, Sept. 2, 1991, p. 26).

Meantime, British Gas has begun negotiations with Petroleum Authority of Thailand (PTT) for supply of domestic natural gas for the project. British Gas has proposed to carry out the project as a joint venture with PTT, TOC, downstream users, and other Thai concerns with British Gas as core investor.

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