Controversial Thai-Malaysia gas pipeline gets nod
Date: 26-Oct-01
Country: THAILAND
Prasert Bunsumpun, PTT's senior vice president for its gas business, told Reuters he expected gas flow to begin by late 2003, one year later than initially planned.
"The project has been delayed for a year...and it will take more than a year for construction," he said.
Construction of the 366-km (227-mile) pipeline and a gas separation plant was due to begin early this year, but has been delayed by the wait for environmental approval and local protests in Songkhla Province in southern Thailand, where the line is due to come ashore.
The gas pipeline project worth 20.80 billion baht ($464.9 million) will be operated by Trans-Thai Malaysia Co, a joint venture between Malaysia's state oil company Petronas and PTT.
The main section of the pipeline carrying gas from the Joint Development Area in the Gulf of Thailand to the separation plant has a capacity of just over one billion cubic feet a day.
Both Thailand and Malaysia will buy gas from the project, although Malaysia will take all production for the first five years.