Thai PTT Gas delays pipeline project on tight steel supply

14 October 2004 04:12  [Source: ICIS news]

SINGAPORE (CNI)--Thailand's PTT Gas has delayed the completion of a third pipeline transporting gas from the Arthit field in the Gulf of Thailand because of difficulties securing its steel requirements, a company official told CNI on Thursday.

Facing a limited gas supply and growing domestic demand, Thai gas end-users were hoping to secure the additional supply as soon as possible.

Thai Olefins Co (TOC) is expected to run its new 300 000 tonne/year ethane-based ethylene unit under 50% of capacity when it comes onstream in November because of the lack of gas supply.

The new pipeline project was originally scheduled to be completed by 1 January 2006, but the new completion date has been pushed back by about three months to sometime in March, she said. Tight world steel supply had affected the construction industry across the board.

Besides TOC, electricity generators in Thailand were also feeling the squeeze by the limited gas supply, forcing them to turn to fuel oil as alternative fuel stock. 

Thailand is now receiving gas from two pipelines in the Gulf of Thailand, and one pipeline from Myanmar. However, these pipelines are now running at maximum capacity.

PTT Gas, which monopolises the domestic gas supply and distribution, is a unit of PTT Plc.

By: Edgar Ang
+65 6780 4359

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