PTT plant closures force LPG imports to record highs

BANGKOK, 16 March 2010 (NNT) – The amount of imported liquefied petroleum gas may reach 154 billion tons per month as the operation PTT Plc’s 6th gas plant continues to be on hold.

Director of the Fuel Trade and Stockpile Bureau, Ms Poosub Sakunee, said the Energy Ministry has met with PTT to plan LPG imports to prevent possible future shortages. PTT will handle imports of the alternative fuel and will receive compensation for price differences from the national oil fund.

PTT is preparing to import 110 billion tons of LPG within the month and 154 billion tons in April and May. This figures are the highest instances ever seen in Thailand. Compensation from the oil fund is estimated to be around 15 THB per kilogram of LPG. The latest price of imported LPG (FOB) is at 770 USD per ton while the controlled selling price in the country is at 320 USD per ton.

The reason behind the increase is due to the suspension of PTT’s gas separation plant, which is tied up in the Map Ta Phut industrial estate halting. The company’s other plants have also been forced to close for maintenance.

PTT has scheduled the closure of its 1st separation plant from 18 May to 11 June, the 2nd from 6 to 10 May, and the 3rd from 19 to 28 April.