Thai-M'sia gas pipeline by yr-end
The EDGE FinancialDaily, Thursday, 29 July, 2004
By Doreen Leong
THE Trans Thai-Malaysia gas pipeline grid, after being delayed for some time, is expected to be completed byyear-end and consolidate Malaysia 's position as the most advanced national grid in the region.
"By end of this year, Thailand will be connected to Malaysia , said Petroliam Nasional Bhd (Petronas) president and chief executive officer Tan Sri Mohd Hassan Marican.
He said work was progressing on the"building blocks" of the gas pipeline network both offshore and onshore. Mohd Hassan is also the acting chairman of Petronas.
" Malaysia has the most advanced national grid in the region. We have been connected to Singapore ; Indonesia is now connected to Malaysia and Singapore ; Myarunar to Thailand
"By virtue of us having in place a gas pipeline infrastructure to the PGU (Peninsular Gas Utilisation) system, Malaysia will benefit out of this interconnection; Mohd Hassan, who is also Petronas Gas chairman, told reporters after the company's AGM in Kuala Lumpur yesterday.
He said that the 374km gas pipeline project was originally slated to start in mid-2002, but was delayed until the middle of last year, primarily due to objections from environmentalists.
FinancialDaily reported recently that a Barclays Capital-led consortium of 15 international banks had given a long-term loan of US$524.30 million (RM1.99 billion) for the project.
Petronas and Petroleum Authority of Thailand plc entered into a 50:50 joint venture to undertake the project, which is estimated to cost between US$700 million and US$1 billion.
It will transport natural gas from a plant in Songkhla, Thailand, to Malaysia by linking up to the PGU grid It is part of the 4,500km RM26.6 billion Trans-Asean Gas Pipeline,with seven identified routes either operational or being developed.
Under the project, gas pipelines will connect Malaysia , Singapore , Indonesia , Thailand , the Philippines and Myanmar and the rest of the 10 Asean countries before the end of the decade. The other Asean countries are Brunei , Cambodia , Laos and Vetnam.
Meanwhile, Mohd Hassan said Petronas Gas hoped to achieve higher utilisation of gas riding on increasing demand for power. He said since the beginning of the year, it had seen some increase in gas utilisation.
Analysts expect demand for gas to further decline when the coal-powered Tanjung Bin plant starts operations in 2007.
The government is effecting a shift in fuel mix to 30% and 60% for coal and gas respectively in 2005 compared with 8% and 79% respectively in 2000.
"Petronas Gas will continue to carry the volume of gas to the Petronas customers both in the power and non-power sectors and the export market. As the demand requirement increases, volume increases as far as gas utilisation is concerned; said Mohd Hassan.
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