Lower power costs
The Nations, September 27, 2003
Watcharapong Thongrung
ELECTRICITY BILLS are set to fall thanks to the Energy Ministry's successful negotiations with Chevron Offshore (Thailand) to reduce the price of natural gas from its Gulf of Thailand concessions.
Energy Minister Prommin Lertsuridej said a fall in the cost of natural gas would lower the cost of electricity.
Chevron said it would lower its price of Bt8g.7 per million BTUs by 2 per cent for all natural gas bought by PTT Plc in excess of the amount specified in its concession.
The company is under contract to sell 60 million-70 million cubic feet of natural gas per day to PTT.
PTT typically buys 210 million cubic feet of natural gas per day from Chevron.
The price-lowering agreement will trim Thailand's spending on energy by Bt10 billion.
Prommin said Chevron's concession from PTT would expire in 10 years.
A source at the Energy Ministry said Prime Minister Thaksin Shinawatrawould presides over the signing ceremony for the agreement.
The purchase prices will take effect immediately after an agreement is signed. Back to Newsclippings | To top
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