| NEPC orders study on breaking monopoly of PTT in LNG business |
The National Energy Policy Council yesterday assigned involved agencies to study guidelines to promote competition in the liquefied-natural-gas industry that will end the monopoly of state-controlled energy conglomerate PTT in the LNG business.
The NEPC approved three core energy plans - the Alternative Energy Development Plan (AEDP 2015), the Oil Plan 2015, and the Gas Plan 2015 - which set guidelines and targets for national energy development for the next 21 years (2015-2036).
Energy Ministry permanent secretary Kurujit Nakornthap said the Gas Plan set a principle for promoting competition and investment in LNG infrastructure through utilising the mechanism of the third-party access and proper regulatory oversight.
The NEPC has assigned the ministry's departments and the Energy Regulatory Commission jointly to study guidelines for inducing competition in the LNG sector, in which PTT is currently the sole player.
Kurujit said major users of LNG such as the Electricity Generating Authority of Thailand would be interested in participating in the business.
Given this development, the NEPC did not approve PTT's Bt65-billion plan to build its third LNG terminal and storage facilities. Nevertheless, the council approved the energy giant's plan to build the fifth natural-gas pipeline network with a total investment cost of Bt110.1 billion to replace the first system that was built more than 30 years ago.
The Energy Policy and Planning Office's director-general, Twarath Sutabutr, said LNG was expected to play an increasing role in the energy sector, with demand growing from between 2.6 million and 3 million tonnes a year at present to 24 million tonnes per year in the future.
Kurujit said the AEDP 2015 involved an increase in renewable energy's share of total energy consumption from 12 per cent at present to 30 per cent within 21 years, up from 25 per cent in the previous plan.
The Oil Plan focuses on enhancing efficient use of fuels, promoting biofuels and restructuring fuel prices to come in line with market costs.
18 September 2015
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