Mizzima News

Chiang Mai (Mizzima) – The Thai cabinet has permitted the country's largest state-owned energy provider, PTT to sign a new gas deal in the Zawtika Field in the Gulf of Martaban of Burma.

Watchara Kannika, deputy spokesperson of Thai Government’s House said in a press conference on Tuesday that the Thai cabinet approved the proposal of the National Energy Policy Committee for the new gas deal.

“The field in M9 block can produce 300 million cubic feet per day. Of that, 240 million cubic feet will be supplied to Thailand and 60 cubic feet used in Burma as price from this field. The price is the same as that of gas from Yadana and Yetagun fields,” he said, according to a report in Thai News Agency website.

Thailand’s Energy Minister Wannarat Charnnukul said on Monday after he chaired a meeting of the National Energy Policy Committee, which endorsed a five-year supply plan. The demand is expected to increase to 5.142 billion cubic feet of gas per day by 2015.

The MoU is worth more than US$1 billion (Bt33.29 billion) and will see a supply of gas for 25 to 30 years. Gas transmission from the field will start in 2013, Wannarat said.

The date of the signing has not been revealed yet.

The plan is to supply 6,890 megawatts, as per a second revision of the 2007 power-development plan (PDP).

Thai authorities have predicted the natural-gas demand to grow six per cent a year, with an annual demand from power plants to expand by 3.3 per cent, the industrial sector by 11 per cent and the transportation sector by 23 per cent.

Thailand also would sign a tariff MoU between the Electricity Generating Authority of Thailand (Egat) and Laos, aimed at purchasing electricity from the Nam Nguem 3 power plant in that country which has a capacity of 440MW. It will start operations in 2017.

"We plan to collect a fee of Bt 2.65 per unit of electricity, but Egat must negotiate the MoU with all of the stakeholders again," Wannarat said.

However, in September, environmentalists have appealed to the government of Thailand to revise its energy plan that may have been ‘over estimated’, and would cause human rights violation in neighbouring countries.

Recently, Montree Chantawong, an environmentalist from Towards Ecological Recovery and Regional Alliance (TERRA) project under the Foundation for Ecological Recovery told the Mizzima that the recent plan of the Thai government which includes Lao and Burma is not necessary for Thailand’s energy needs.

“Several studies have found that Thailand has the ability to develop alternative energy sources. It’s not necessary to buy electricity particularly from both Tasang and Hat Gyi dams in Burma at the moment because the electricity reserve is still high,” he said.

The gas deal with Burma by the Thai government has been urged for revision by activists since 2007 after PTT signed an exploratory agreement with the generals to look for gas in the M9 Block in the Gulf of Mataban.

Rights groups are concerned with business dealings in Burma which help support the military regime.

However, Thai government insists that it is necessary for national energy security.