PTT to speed gas line demonopolization, offering flurry of projects

Budgetary constraints and the urgency to beat project completion deadlines have led the Petroleum Authority of Thailand (PTT) to open up its long monopoly in natural gas transmission in Thailand to the private sector sooner than expected. Essentially, the main target of the exercise is to get the state-owned petroleum company's eight gas pipelines and related facility projects, worth over 49 billion baht ($1.23 billion), off the ground on schedule.

May 25, 1998

3 min read

Essentially, the main target of the exercise is to get the state-owned petroleum company's eight gas pipelines and related facility projects, worth over 49 billion baht ($1.23 billion), off the ground on schedule.

The private sector would provide part of the financing needed for these schemes, which would otherwise be wholly funded by the Thai state oil giant if budget cuts, spurred by the nation's current economic turmoil, had not been forced.

There is urgency for several of these projects to be implemented because they are parts of the overall gas field development and gas supply plans that have to be implemented on a predetermined schedule, said PTT Gas Pres. Piti Yimprasert.

Projects available

These projects include (see map, this page [121,941 bytes] ):

Laying a 35-in. onshore gas pipeline from Ratchaburi to Wang Noi in Ayuthaya, with an estimated project investment of 11.29 billion baht and scheduled for completion in mid-1999 to 2000. This line forms an extension of the 260-km Thai section of the Myanmar- Yadana gas transmission system.
Laying a 24-in. offshore gas pipeline from Benchamas gas field to Tantawan gas field in the central Gulf of Thailand, a project valued at 487 million baht and slated for completion in mid-1999.
Installing a subsea pipeline, 53 km and 24-in., from Unocal Corp.'s operated Pailin gas field in the gulf to PTT's gulf trunk lines at a cost of 2.48 billion baht, a project to be completed in 1999.
Laying an additional 28-in. onshore pipeline from Rayong on the eastern seaboard to Bangpakong and installing compression facilities in a project valued at 9.33 billion baht and pegged for completion at yearend 2000.
Constructing an offshore gas compression platform at the midpoint of the subsea Erawan-Rayong parallel gas trunk lines in the gulf for an investment of 8.22 billion baht and with a scheduled completion towards yearend 2000.
Laying an onshore 20-in. gas pipeline from the Khanom gas processing complex at Nakhon Si Thammarat, southern Thailand, to Surat Thani, valued at 2.5 billion baht for completion towards yearend 2002.
Installing a 20-in. onshore gas line from Surat Thani to Krabi, southern Thailand, valued at 6.23 billion baht, with completion set for yearend 2004.
Laying a parallel subsea gas pipeline from a point at one of the trunk lines near the midpoint compression facilities to Tubsakae, Phetchaburi, southern Thailand, a project valued at 9.17 billion baht.

Joint ventures

PTT has already struck a joint venture accord with Thai Po, Thai Romo, and B8/32 Partners Co.-the concessionaires owning Benchamas and Tantawan gas fields-for the offshore Benchamas-Tantawan gas line.

The concessionaires agreed to fund 65% of the pipeline scheme, with PTT having a 35% share.

The Thai state oil firm is also negotiating a joint venture deal for the Pailin line with the field's concessionaire group led by Unocal Thailand Ltd.