PTT And EGAT Sign Us$1.8 Bln Gas Supply Agreement

[Jai Dee]

Thailand's PTT, Egat Sign US$1.8 BLN Gas Supply Agreement

BANGKOK, Feb 3 Asia Pulse - Thai energy giant PTT Plc (SET:PTT) Thursday signed a gas sales agreement with the Electricity Generating Authority of Thailand (SET:EGAT) to supply around 72 billion baht (US$1.8 billion) worth of gas over 16 years.

PTT will supply EGAT's Nam Phong Power Plant in Khon Kaen with an average 108 million cubic feet of natural gas per day from the Nam Phong and Phu Horm gas fields, PTT said in a statement.

The natural gas will replace the use of diesel in fueling the power plant in Khon Kaen as well as lower power production costs.

The use of indigenous gas is also expected to reduce the country's need to import oil, which is getting increasingly costly with current world oil prices, according to the statement.

SOURCE: ASIA PULSE - Friday February 3, 11:03 AM