Unocal embarks on study to build Thai gas pipeline

Unocal embarks on study to build Thai gas pipeline

SINGAPORE (AFP): U.S. energy giant Unocal Corp. said here
yesterday it had embarked on joint venture study with Thai and
Japanese parties to build a natural gas pipeline in Thailand
costing up to US$1 billion.

Based on the plans, the pipeline from the eastern seaboard to
northeastern Thailand would carry gas from the Gulf of Thailand
to supply energy to mining and related industries in the region.

"We believe the idea to build and operate a pipeline system to
supply industry in the northeast (Thailand) is another beneficial
way to participate in the kingdom's overall growth," said the
president of Singapore-based Unocal Asia-Pacific Ventures Ltd.,
John Vandermeer.

Unocal Asia-Pacific Ventures, a subsidiary of the California-
based oil giant, said in a statement it had signed a memorandum
of understanding with the Petroleum Authority of Thailand (PTT),
and Nissho Iwai Corp. of Japan to conduct a feasibility study for
the onshore pipeline.

"The study would also include the feasibility of laying fiber
optics cables alongside the pipeline in order to increase the
communications potential of the region," the statement said.

Unocal and Nissho Iwai had already completed a preliminary
feasibility study for the project and that further studies with
the PTT would determine the economics and commerciality of
building and operating the pipeline, it said.

Expenditure by the co-venturers could reach one billion
dollars if all elements of the project were built, the statement
said.

Analysts said Unocal's announcement was a morale boost in
terms of investor confidence to the Thai economy. The central
Bank of Thailand (BoT) moved Wednesday to float the baht
following a series of economic difficulties.

"Unocal has worked in Thailand for 35 years and we have a long
term relationship and our confidence in its ability to weather
this economic storm doesn't change," Unocal spokeswoman Carol
Scott said.

Vandermeer said that Unocal was confident that the supply of
energy would not only expand the mining industry but would create
jobs and improve the living conditions for the people in
Thailand's northeast.

Unocal Thailand, a separate Unocal subsidiary, currently
produces one billion cubic feet (28.32 million cubic metres) per
day of natural gas from its fields in the Gulf of Thailand to
supply approximately 20 percent of Thailand's electricity.

Unocal is also involved in a joint venture project with
Thailand's PTT as well as Myanmar Oil and Gas Enterprise and
French oil giant Total, which serves as operator, in the giant
Yadana gas field offshore Myanmar.