Renewed Nuclear Fears To Fuel Demand For Natural Gas In Thailand

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Renewed nuclear fears to fuel demand for natural gas

By WATCHARAPONG THONGRUNG

THE NATION

Amsterdam

Japan's nuclear crisis will likely spark global demand for natural gas to fuel conventional power plants, with Thailand also cornered into considering importing more gas if its atomic-power plans are eventually shelved.

"Gas demand should rise after the Japan nuclear accident. PTT will need to explore options to secure more gas," Norkun Sitthiphong, permanent secretary of the Energy Ministry, said yesterday.

PTT, the national oil and gas company, is also looking at investing in overseas gas fields, he said.

The ministry is revising the 2010 Power Development Plan (PDP) to take into account the possibility that the plans for two key non-gas power sources do not pan out. The five nuclear-plant projects expected to supply 5 gigawatts annually might all be scrapped. And the nine coal-fired power plants expected to supply 800 megawatts each might not all be built over the next 20 years as planned because of public resistance.

"What will Thailand do then? Our option is PTT may need to speed up the feasibility study for the second LNG [liquefied natural gas] terminal. This would be carried out side by side with the energy-conservation programme," he said.

Norkun is attending Gastech 2011, the biennial international conference for gas suppliers and consumers.

Prasert Bunsumpun, president and chief executive officer of PTT, the sole Thai exhibitor at the event, said in Amsterdam that the first phase of the LNG terminal, worth about US$800 million (Bt24 billion), would start operating in May.

The terminal is designed to accommodate up to 10 million tonnes, starting with 5 million in the first phase. The second phase is expected to be completed in 2021. Under the original PDP, if nuclear and coal-fired power plants materialise as planned, Thailand's gas demand will stabilise at 5 billion cubic feet per day from 2020 to 2030. Then, gas will fall to 39 per cent of all types of fuel for electricity generating, from 66 per cent now.

If the nuclear power plants are a no-go, gas will rise to 66 per cent or 6bcfpd. If all nine coal-fired plants are also excluded, gas will rise to 71 per cent or 7bcfpd. With 3bcfpd coming from the Gulf of Thailand, 4bcfpd would need to come from abroad.

Prasert said the growing demand would force PTT to move up the construction of the second terminal, which had been set for 2025.

While LNG volume would rise sharply, PTT is increasing gas supply through pipelines with four more contracts. The combined supply of 955 million cubic feet per day would come from JDA Bloc 17, Chevron Field, Bongkot South Field and Bloc M9, from 2010-2013.

In Bangkok, Kurujit Nakornthap, deputy energy permanent secretary, told a conference that the nuclear option was worth preserving, given the country's extraordinary reliance on gas for producing electricity.

"Not that we're headstrong [on nuclear], but we need to find a viable solution to cope with the crisis in the future," he said, mentioning the safety issue.

The public should bear in mind that neighbouring countries such as Vietnam are committed to erecting their own nuclear power plants, which are only about 300 kilometres from Thailand's Ubon Ratchathani.

The wildfire in Indonesia also taught the lesson that when something happens in the region, all feel the impact, he added.

-- The Nation 2011-03-23

[backfromouterspace]

I would have thought people would be reassured by how safe nuclear power is. A massive earthquake, plus a tsunami hit a very old power plant with inadequate safety features and, in the end, there is no significant loss of life or major radioactive leak. That would tend to indicate that nuke power plants are pretty safe.