PTT to build power plant on pipe­line route in city

Bangkok Post - - Companies - Yuthana Praiwan Bloomberg News

PTT Plc plans to build a com­bined heat­power plant (CHP) along its gas pipe­line in Greater Bangkok to gen­er­ate 900 megawatts of elec­tric­ity over the next sev­eral years, pres­i­dent and chief ex­ec­u­tive Prasert Bun­sumpun said yes­ter­day.

The plan is part of an at­tempt to max­imise ben­e­fits from the gas busi­ness as the com­pany ex­pands pipe­lines across Bangkok to a to­tal length of 300 kilo­me­tres, mainly to serve Elec­tric­ity Gen­er­at­ing Author­ity of Thai­land power units.

Mr Prasert said said CHP power plants were more ef­fi­cient com­pared to tra­di­tional power gen­er­a­tion sys­tems. To­tal out­put is as high as 80% of fuel con­sump­tion as the plants can re­use steam that is a byprod­uct of the pow­er­gen­er­at­ing process, while tra­di­tional plants pro­duce only elec­tric­ity with byprod­ucts left un­used.

PTT also plans to build nat­u­ral gas re­fill­ing sta­tions for ve­hi­cles along its pipe­line net­work to re­sponse to fas­tris­ing de­mand for the fuel. Un­der the plan, gas pipe­lines would fol­low high­ways and rail­ways from Rangsit to Su­varn­ab­humi Air­port and from Sa­mut Prakan to the Bangchak oil re­fin­ing plant.

The first CHP will serve de­mand of Bangchak Pe­tro­leum, which like PTT is ma­jor­ity state-owned. PTT will in­vest about one bil­lion baht in a 25-megawatt plant that will gen­er­ated steam at 90 tonnes an hour. Com­mer­cial op­er­a­tion will start in the sec­ond quar­ter next year.

Bangchak will use all of the power and steam and will pro­vide land for the plant. PTT will hold a 25-year li­cence to op­er­ate the as­sets, which will be trans­ferred to Bangchak af­ter that.

Bangchak is im­prov­ing its 30-yearold oil re­fin­ery and needs more power to serve the new fa­cil­ity in im­prov­ing out­put qual­ity from a new hy­dro-crack­ing unit, part of its prod­uct qual­ity im­prove­ment (PQI) pro­gramme. Bangchak pres­i­dent Anusorn Saeng­n­im­nuan said the PQI pro­gramme would help it save 2-3 bil­lion baht a year.

PTT said it ex­pected net profit in 2008 to be lit­tle changed from last year as profit growth slows at its re­fin­ery and petro­chem­i­cal units. Net profit last year rose 2.7% in 2007 to 97.8 bil­lion baht.

‘‘It will be hard to du­pli­cate strong earn­ings per­for­mance in 2007 from the com­pany’s re­fin­ery and petro­chem­i­cal units,’’ Mr Prasert said yes­ter­day.

Prof­its at lo­cal oil re­finer may fall this year be­cause of a slow­ing global econ­omy, Chainoi Puankosoom, chair­man of the re­fin­ing group at the Fed­er­a­tion of Thai In­dus­tries, said last week.

PTT is in talks with PT Per­tam­ina to buy liq­ue­fied nat­u­ral gas from the In­done­sian state-owned com­pany, said Chitrapong­se Kwangsukst­ith, ex­ec­u­tive vice-pres­i­dent for the gas busi­ness. The com­pany plans to buy be­tween one mil­lion and 1.5 mil­lion tonnes of LNG per year for at least a decade.

Gas sup­plies from Per­tam­ina may start in 2012, said Mr Chitrapong­se.

PTT shares closed yes­ter­day on the SET at 336 baht, up eight baht.

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