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Sunday, April 6, 2008

Problem of Gas deliveries low

Delays in gas deliveries from the Arhit field by PTT exploration and production Plc (PTTEP) could push up power production costs this summer for the Electricity Generating Authority of Thailand. Egat may need to use more fuel oil to produce power to meet demand during the peak season for electricity consumption. Egat would have to shoulder the additional cost of 0.06 to 0.07 baht per kilowatt/hour (unit), which might translate into higher power tariffs during the season. PTTEP had made a commitment to start delivering gas from the Arthit field in the Gulf of Thailand at 330 million standard cubic feet per day (mmscfd). However, a leak reduced the flow to 80 mmscfd. PTTEP said the problem was being addressed and output had increased to 130 mmscfd. It was expected to continue rising to meet the daily contract quantity of 330 mmscfd.

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