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.