LPG price likely to be elevated

BANGKOK, 15 December 2009 (NNT) – The Ministry of Energy may consider elevating the price of LPG over concerns that the suspension of 65 Map Ta Phut projects may delay the gas production of PTT Plc.

Speaking after meeting with the public sector over the Map Ta Phut problem, Minister of Energy, Wannarat Channukul, said PTT Plc is working to file an appeal to the court enquiring whether the company’s gas fragmentation project conforms to pre-2007 Constitution requirement on Environmental Impact Assessment (EIA) or not.

If PTT’s 6th gas fragmentation unit, which has a monthly producing capacity of 100,000 tons, is suspended, next year’s domestic supply is likely to suffer a shortage. The imported LPG in 2010 is expected to rise to 700 million USD per ton, prompting a higher price compensation of 1.4 billion THB per month which would affect the oil fund. By that time, the Energy Minister said the ministry might have considered adjusting the domestic LPG price.

Out of the 65 projects being suspennded, 26 belong to the energy sector, seven of which are under temporary protection and 19 are suspended. It is estimated that the suspension would cause a loss of more than 93 billion THB in investments and a loss of 89 billion THB in investment opportunities.