PTT plans to move faster on LPG pipeline project

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PTT plans to expedite construction of an LPG pipeline from Sri Racha to Saraburi to lower production costs and improve gas-transmission capacity.

The pipeline will carry liquefied petroleum gas from Khao Bo Ya terminal in Sri Racha district of Chon Buri province to Saraburi. This project will proceed in parallel with PTT's expansion of the LPG terminal and shipping port, which is being undertaken by contractors, said Saran Rangkasiri, senior executive vice president for oil business.

Currently, there is an LPG pipeline between an oil refinery and a gas separator plant, which leads to the Khao Bo Ya LPG terminal, before the gas is transported by ship, rail and truck. LPG transport via trucks is costly and susceptible to road accidents, resulting in higher gas prices in the provinces than in Bangkok. Hence a pipeline is safer and the most cost-efficient technique in the long run.

The pipeline is the LPG project's second phase, originally planned for 2016. PTT is conducting a feasibility study on proceeding with the pipeline phase in parallel with the project's first phase, the expansion of the terminal expansion and the port.

PTT would need to invest about Bt10 billion to construct the pipeline, which would take two years to complete, against the initial estimate of around 2018.

-- The Nation 2013-12-26