Gas deals with Rangoon

Published on Oct 4, 2002

Rangoon has agreed to cut the price of gas sold to Thailand, slashing the country's energy bill by billions, outgoing Industry Minister Suriya Jungrungreangkit said yesterday.

Burma has agreed to reduce gas prices for the additional volume bought by Thailand over the stipulated contract minimum.

Suriya said the concession made Yetagun gas cheaper than fuel oil.

In addition, Burma also okayed a cut in the take-off volume.

Thailand was contracted to buy a minimum of 200 million cubic feet a day in 2000, increasing to 260 milion cubic feet a day in 2004.

The contract changes also see the Yetagun-field developer footing a bill of approximately Bt840 million for an upgrade that will increase gas heating values.

The heating values will be optimised for the Ratchaburi power generation plant.

PTT signed the gas-import contract with the Yadana gas field in 1994 and the Yetagun field in 1999.

Suriya said after signing the Yetagun contract amendment, PTT would settle an outstanding $100 million (Bt4.33 billion) bill for Yadana-field gas.

Thailand will sign the amendment when the new industry minister takes office.

Suriya has been appointed Communications Minister.

Watcharapong Thongrung

The Nation

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