Thailand's Yadana pipeline work nearly complete

Petroleum Authority of Thailand (PTT) expects to finish laying the 16.5 billion baht ($410 million) Yadana gas pipeline close to the planned completion date of July 1, despite setbacks and protests.

In early June, PTT officials said laying of the 42-in., 260-km pipeline from Ban I-Tong on the Thailand-Myanmar border to Ratchaburi was 99% completed, while the overall Yadana gas field development and export project was said to be 95% complete.

By early June, three stretches-each of less than 800 m-remained to be laid, while construction of block valve units along the route and the metering stations at Ban I-Tong was in full swing.

PTT officials said they are confident of meeting the July 1 completion deadline.

Environmentalists opposed the pipeline because of a 6-km section of the route that passes through the rainforest in Kanchanaburi province. Earlier this year, activists camped out along the route to block the pipe-laying.

Opponents charged PTT with not following procedures laid down in its environmental impact assessment during the pipe-laying work. For example, one group alleged PTT did not use cable cranes to carry pipe sections through the forest but cut a wide path instead.

PTT officials said the contractor used the cable cranes in difficult terrain, as promised, and that PTT had lived up to its commitments in treating ecologically sensitive areas along the pipeline route with care.

Among PTT's problems with Yadana is the prospect of a cost overrun because of a $40 million claim by Tasco Mannesmann, the Thai-German pipe-laying joint venture contractor, for additional payment. The contractor claims extra costs stemmed from dealing with protesters and keeping workers and machinery on standby during hold-ups from protests.

Myanmar authorities reportedly have said that development of Yadana gas field in the Gulf of Martaban off Myanmar is almost complete. They anticipate delivering first gas to Thailand on July 1.

Expansion plan

Meanwhile PTT has decided to proceed with a major extension of the Yadana gas transmission system alone, rather than in partnership with private companies. PTT reckons working alone is the only practical method of meeting the target to complete the 12 billion baht ($300 million) pipeline from Ratchaburi to Ayutthaya in 2000 as planned.

Piti Yimprasert, president of PTT Gas, said that, given the considerable time anticipated for negotiating a joint venture contract according to government rules, PTT would not be able to meet the target date.

The planned Ratchaburi-Ayutthaya pipeline was intended to be the first joint venture under the Thai government's plan to break up PTT's monopoly on natural gas transmission.

The new 30-in., 153-km gas line will stretch from the Ratchaburi power plant, now under construction, to Wang Noi power station in Ayutthaya. Both are gas-fired plants operated by the Electricity Generating Authority of Thailand (EGAT).

Piti said there is an urgency to complete the Ratchaburi-Wang Noi pipeline because it would provide an additional outlet for the Myanmar gas that PTT has contracted to purchase.

Yadana's output is expected to reach a plateau of 525 MMcfd 15 months after production begins next month.

In 2000, gas supplies from Yadana will be boosted by gas from Yetagun field, another gas field south of Yadana from which PTT has contracted to receive 200 MMcfd of gas.

Design of the Ratchaburi-Wang Noi gas line is completed. PTT has issued invitations to bid for the supply and laying of the gas line, with bids due on Aug. 13.