The Energy Ministry is urging PTT to speed up its Bt30-billion investment in pipelines for natural gas for vehicles (NGV), while promising to take care of the financial burden that the company has shouldered from the NGV business.
Energy Minister Wannarat Charnnukul said after a meeting with the firm yesterday that the investment would ensure a higher supply of gas and reduce transportation costs.
To compensate for the investment, as well as higher subsidies due to the government's decision to maintain the gas price until next August, the Oil Fund will shoulder the monthly subsidy of Bt300 million, he said.
"The compensation rate, and whether it will be more than Bt2 per kilogram, will be discussed later," he said. "On Monday, the National Energy Policy Council will consider relinquishing the decision-making power to the Energy Policy and Planning Office to ensure fast reaction times."
PTT said the current NGV retail price was Bt4-Bt6 lower than its actual cost.
The national oil and gas company plans to invest Bt18 billion in a 200-kilometre pipeline to the North and Bt12 billion in a 150km pipeline to the Northeast.
Under the plan, construction will start next year for completion in 2014. The pipelines will supply gas to NGV stations along the way, as well as to industrial plants.
The company recently cancelled a plan to invest Bt20 billion in another pipeline to Prachuap Khiri Khan.
Wannarat also instructed PTT to expand its network of NGV stations to cover all provinces. At the end of the year, the number of stations is expected to be 405, from 337 at present.
NGV demand is expected to rise to 4,600 tonnes per day by year-end, from the current 3,600 tonnes.
Next week, the National Energy Policy Committee will also consider the terms of reference for allowing garages to convert LPG (liquefied petroleum gas)-driven taxi engines to NGV.
The project involving 30,000 taxis will require an investment of Bt1.2 billion.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment