Bangkok: Ministry of Energy listens to all noises about adjusting the gas price structure. Hire a consultant to complete the study in 9 months, revealing that LNG prices have decreased. The Erawan source came as planned. The impact on PTT was lower than expected. “Khunying Thongthip” was concerned about the impact on competitiveness. Thai products are difficult to compete with.
Mr. Prasert Sinsukprasert Permanent Secretary of the Ministry of Energy said that the Ministry through the Energy Policy and Planning Office (EPPO) is preparing to hire consultants. Conducting a study Adjusting the price structure of natural gas of the country to be fair to all parties The study framework has been set to be completed within 9 months or around the 3rd-4th quarter of 2024, which must be considered in every dimension. including the cost of electricity for the people, the impact of PTT Public Company Limited and related industries such as petrochemicals, the competitiveness of the country, etc.
Mr. Prasert said that the
Publisher must set up questions for consultants to consider in every aspect. The short-term adjustment of the gas price structure announced in accordance with the Cabinet resolution of 19 December 2023 has resulted in the cost of the gas separation plant. Change from gas in the Gulf of Thailand is the average cost of gas from all sources, including the Gulf of Thailand, Myanmar and Liquefied Natural Gas (LNG) (Pool Gas), which will affect the operating costs of the gas separation plant business. KMUTNB PTT that will increase Except for liquefied petroleum gas used as fuel in the country.
This issue is the latest from Khunying Thongthip Rattanarat, a petroleum expert. expressed concern that The impact will fall on the petrochemical industry because even though the purchase price of materials from PTT’s gas separation plant is a market reference price. It is not a cost reference price, but when PTT has more burdens, it is in the process of negotiating with affiliates. Those that use raw materials would like to
increase the price as well. which when the initial cost of petrochemicals increases It will affect the middle and downstream industries. plastic manufacturer Auto parts and others
Therefore, the study framework must be studied in a comprehensive manner, such as in the case of importing more LNG gas. There is less use of Gulf of Thailand gas. What are the continuing effects on the country? Should there be a ceiling or framework for LNG imports in calculating pool Gas or not, or in the case of reverting to the old pool Gas formula that does not rely on LNG imports at spot market prices? In this section, profits of LNG should be determined. gas separation plant appropriately And if there is a profit exceeding the threshold It should be delivered to reduce the cost of electricity for the people, or the government should purchase a gas separation plant from PTT comes to manage it itself. Which will answer the problem of reducing living expenses. and not affect PTT’s shareholders. These ideas must be dolls for con
sultants to find answers to.
However, the impact of PTT from the gas price restructuring There is a preliminary estimate of the impact during January-April 2024, causing the overall performance of PTT’s gas business to decrease by approximately 6,500 million baht. If looking at the actual data. The impact may be reduced because the LNG spot price used in the calculation is 13 USD/million BTU But now it is down to about $9.50/million BTU. Meanwhile At the end of March If the Erawan field produces 800 million cubic feet per day, it may reduce reliance on LNG, and the impact on PTT will also decrease. At the same time, PTT has planned to find measures to reduce the impacts, such as adjusting the operating plan of the gas separation plant. (Optimization) Proposing guidelines for the procurement of LNG to achieve the goal of the electricity price framework according to government policy.-511-Thai News Agency
Source: Thai News Agency