Rethink in Thai govt plan to reduce gas dependency

[webfact]

Rethink in govt plan to reduce gas dependency
Pichaya Changsorn
The Nation

Minister eyes a new era in which natural gas reshapes global economy

BANGKOK: -- Energy Minister Narongchai Akrasanee said yesterday the government was "rethinking" its plan to sharply reduce the country's dependency on natural gas.

Narongchai said anticipation that the world was entering a new era where natural gas would reshape the global economy - the so-called "LNG [liquefied natural gas] revolution" had prompted his ministry to reconsider its plan to accelerate the cut of natural gas used to fuel power generation.

"We're rethinking about [the usage of] natural gas which we once said we would reduce a lot. If this 'revolution' is really coming, natural gas might not be so bad. It is a very clean energy and an alternative energy that is highly efficient," he said.

The ministry has just recently unveiled a 15-year power development plan (PDP-2015) targeting to cut the use of natural gas in the country's power generation from nearly 70 per cent at present, to between 30-40 per cent in 2036.

At the same time the proportion of coal, renewable energy, and electricity imports from hydro-power plants in neighbouring countries would be increased. A previous PDP plan called for the cut in natural gas’s usage to 58 per cent.

The revision of the natural gas plan was among projects Narongchai announced the government would pursue during the rest of its promised tenure this year. Today he will preside at a ceremony to officially inaugurate the first delivery of LNG from Qatar to the Map Ta Phut Industrial Estate.

Areepong Bhoocha-oom, permanent secretary of the Energy Ministry, said the discovery of shale gas had brought down the price of natural gas and might narrow the prices gap with other fuels.

Narongchai said Prime Minister General Prayut Chan-ocha on Tuesday reaffirmed the government's "roadmap" to step down and hold a national election by the end of January or early February (2016). Thus the Energy Ministry would aim to accomplish its mission by the end of this August or early September, prior to preparation for the election.

Plans to be achieved this year include completion of the restructuring of oil and gas prices by the end of March, the finalisation of the PDP-2015, the regulatory regimes and master plans for oil and natural gas sectors, and third-party access rules for natural gas pipelines. Thanks to the Thai military junta's good relationship with neighbouring countries, he said, the ministry was eyeing to push ahead joint development of more hydro power projects in these countries including the 7,000 megawatt Tasang dam in Myanmar.

Narongchai declined to say when the government would stop collecting money for the oil fund and allow more reductions in oil prices. The government had come under a criticism that domestic oil prices have dropped much more slowly than global crude oil prices which have eased rapidly from over US$100 a barrel to under US$50 at present.

"The prime minister said we must prepare for the future, not just satisfy people today," he said, explaining a need to grow the size of the oil fund which would be used to stabilise local oil prices in the future.

According to the Oil Fund Administrative Institute's website, the oil fund's net balance totalled Bt17.6 billion, as of January 4.

Source: http://www.nationmultimedia.com/business/Rethink-in-govt-plan-to-reduce-gas-dependency-30251460.html


-- The Nation 2015-01-08

[rickirs]

Yes, replacing clean imported natural gas with dirty imported coal is the way to environmental sustainability. Electric Genetrating Authority of Thailand (Egat) plans to boost coal as the energy source for power generation from 14 per cent to 23 per cent by 2030.