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.