PTT Plc and Petroliam Nasional Bhd (Petronas) will buy gas from a field shared by Malaysia and Thailand starting January after the construction of a US$900mil pipeline and separation plant, a Thai government official said.
PTT, Thailand's biggest energy company, and Petronas will buy 390 million cu ft of natural gas a day from the A18 field of the Malaysia-Thailand Joint Development Area in the Gulf of Thailand.
The two state-run companies would each buy half the field's output, Thai government spokesman Jakrapob Penkair said after a cabinet meeting in Bangkok.
Thailand and Malaysia are sharing the cost of exploring for gas and building a pipeline in the area overlapping the two countries in the Gulf of Thailand. The project has been delayed for more than two years because of protests by Thai villages concerned about damage to the environment.
Trans Thai-Malaysia Co, the joint venture between PTT and Petronas, and PTT started building the pipeline and the separation plant in July last year after the Thai government agreed to revise the pipeline route and the plant to ease villagers' concerns.
PTT and Petronas would double the gas purchase from the field to 790 million cu ft a day from January 2008, Jakrapob said. The gas purchase contract would be signed for 20 years, he said.
Petronas and Amerada Hess Corp, the fifth biggest US oil company, are jointly developing the A18 gas field with equal ownership. Bloomberg
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