PTT, Petronas open talks on gas separation plant

PTT, Petronas open talks on gas separation plant

BANGKOK (Reuters): State-run Petroleum Authority of Thailand
(PTT) is in talks with Malaysian state oil firm Petroliam
Nasional Bhd (Petronas) on a 10 billion baht (US$252 million) gas
separation joint venture plant in Myanmar, an official said on
Monday.

Prasert Bunsumpan, president of PTT's gas unit, told Reuters
the plant would produce liquefied petroleum gas (LPG) from
natural gas and other hydrocarbons from the Yetagun field in the
Andaman Sea off the coast of Myanmar.

The plant would have a daily production capacity of 300
million cubic feet.

"We'd like Petronas, which is a partner in the Yetagun field
investment, to take part in this project too," Prasert said.

Petronas, Malaysia's largest company, posted a net profit of
12.60 billion ringgit ($3.32 billion) for the year to March 2000,
up 85.1 percent from 6.81 billion in the previous year.

PTT said last month it was conducting a feasibility study into
the gas-separation plant because it would be more economically
wise not to use Yetagun gas, which contains a high portion of
propane, just to fuel electricity plants.

The LPG produced from the field would be delivered for sale in
Yangon and Thailand, Prasert said.

PTT's production capacity is about one million tonnes per
annum, of which 600,000 to 700,000 tonnes is consumed
domestically.

PTT now has four separation plants situated in the eastern
province of Rayong and the southern province of Surat Thani.

A fifth is planned for the Maptapud Industrial Estate along
the Eastern Seaboard to separate gas from fields in the Gulf of
Thailand.

Prasert said PTT might invite Myanmar to join the venture,
which would eventually also involve a fertilizer plant in the
area.

"According to our study, the project is quite promising as its
return on investment is about 15 percent," Prasert said.