PTT is pushing for the procurement of steel pipes for its fourth natural gas pipeline so its construction costs can be kept low, PTT's chief operating officer Chitrapongse Kwangsukstitt said yesterday.
He explained that immediate bidding on steel pipes should help save PTT costs for the construction of the 300-kilometer project. PTT has set aside US$1 billion (Bt33.78 billion) to cover the project, which requires about 200,000 tonnes of steel pipes.
"The current price of steel and other construction materials are more than 40 per cent cheaper compared to their peak price," he said.
The company will also be adopting an international bidding approach, which should be completed by the end of the year.
The fourth pipeline will link the liquefied natural gas (LNG) terminal in Map Ta Phut in Rayong province to Saraburi and should be able to transmit 2 billion cubic feet per day.
PTT had originally planned to launch the project last year for completion within 20 months, but it was delayed because the economic recession had forced a decline in gas demand.
Chitrapongse added that PTT was reviewing domestic demand of natural gas to see if it was in line with the country's economic recovery. PTT is maintaining its plan to import LNG by late 2011 under a memorandum of understanding it signed with Qatargas Operating, which requirest 1 million tonnes of LNG to be imported annually. However, PTT is still waiting for the National Energy Council's consent before it signs an official purchase agreement with Qatargas.
PTT's senior executive vice president for the gas business unit, Permsak Shevawattananon, said the company saw a 30 per cent progress on the construction of the LNG terminal, which should be completed by mid-2011.
The company's subsidiary PTT LNG will be spending Bt32 billion on the construction of the terminal, which comprises a vessel-docking terminal and an LNG station with a maximum storage capacity of 5 million tonnes.
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