PTT scrutinises gas projects due to

[ausgeo@xxxxxxxxxxxxxxx]

Date:	23 Sep 1997 

The Nation 
PTT scrutinises gas projects due to fiscal turmoil
AP-Dow Jones 
SINGAPORE ­ Thailand is studying plans to increase imports of natural gas from 
neighbouring Burma in line with its review of a number of natural gas import 
proposals, Viset Choopiban, president of Petroleum Authority of Thailand unit 
PTT International, said yesterday. 
The recent economic crisis in Thailand has forced state-owned PTT to review 
the feasibility of a number of petrochemical and natural gas projects, 
including a plan to import liquefied natural gas from Oman and also to pipe 
natural gas from Indonesia's giant Natuna field. 
Additional natural gas sourced from Burma's Yadana and Yetagun fields, in 
which PTT affiliate PTT Exploration and Production has a 25.5 per cent and a 
14.1 per cent stake respectively, may now prove more economical as a result of 
a pipeline already under construction and due for completion next year, Viset 
said. He added that PTTEP was also looking at potential supply from the 
Vietnam-Thai border area, thought to be rich in gas. 
"We have to utilise our [nearby] sources first," Viset said. He added that 
these existing projects could yield additional natural gas imports more 
quickly than other projects under consideration. 
Thailand has already agreed to import about 750 million cubic feet a day of 
natural gas from the two Burmese fields to fuel the 4,600 megawatt power 
plants owned by the Electricity Generating Authority of Thailand (Egat). 
Viset was speaking at a private briefing ahead of the start of the 13th Asia 
Pacific Petroleum Conference in Singapore. 
Regarding the planned privatisation of PTT, which the Thai government has 
requested be speeded up, Viset said, "PTT will still be a [single] integrated 
company after privatisation ... the synergy of gas, oil [and other sectors] 
would be good for PTT in the long run." 
PTT has been studying privatisation plans for the last two years, and that 
study should be completed "very soon", Viset said. Previously PTT indicated 
the study should be finished in late September or early October. 
Viset estimated that PTT had working capital of US$671.8 million as of June 
before the de facto devaluation of the baht. He valued PTT assets at $4 
billion with a turnover of $5 billion. 
Although Viset conceded PTT has been affected by the baht depreciation, he 
said nevertheless it has been "maintaining a satisfactory financial 
performance and a strong marketing position". He added that exchange rate 
fluctuations are "automatically adjusted at retail". 
PTT pays for its crude oil imports, amounting to 200,000 barrels a day, in US 
dollars, but relies on baht revenue for domestic sales. 
Previously a net importer of refined products, Thailand became a net exporter 
of most refined products only last year with the start up of two new 
refineries; Rayong Refinery Co, with a 145,000 b/d capacity, and Star 
Petroleum Refining Co, with 150,000 b/d. 
PTT exports of refined products from local refineries were 2.3 million barrels 
in the first half of 1997, while exports of liquefied petroleum gas from gas 
separation plants amounted to 200,000 tonnes, Viset said. Exports of natural 
petrol and condensate amounted to 2.4 million barrels while those from 
petrochemicals reached 71,000 tonnes in the first half of the year. 
Viset said PTT would be looking to diversify its crude oil supply to include 
crudes from West Africa and the Yemen within "one or two years" as crude 
production in East Asia declines. 
He said such diversification of supply would be in line with Thailand's goal 
to reduce production of high-sulphur diesel, and may be sought through term 
contracts. Separately, Viset said Thai refining margins had been negatively 
impacted by the rising cost of its dollar-denominated crude imports and 
simultaneous weakening in the value of its oil product sales.