Trans-Thai-Malaysia gas pipeline

THE START of construction on the 350-km Trans-Thai-Malaysia gas pipeline connecting fields in the Gulf of Thailand with northern Malaysia has been delayed by two months from February to April, TTM official said last month. The schedule was pushed back because the TTM board could not finalize the contractors, the official said, but would not state the reasons. “The proposals submitted by the contractors in late 2001 expired earlier this month, and since no awards were made until then, the contractors now have to resubmit their proposals,” he explained. The contractors are expected to resubmit their proposals shortly, with awards expected to be made
in early-April, the official said. Construction of the pipeline is expected to take two years.
The 350-km pipeline is a 50-50 joint venture between the Petroleum Authority of Thailand plc and Malaysia’s Petronas. The pipeline will run from the Malaysia-Thailand Joint Development Area in the Gulf of Thailand to Songkhla in southern Thailand, and thence to Kedah in northern Malaysia. The JDA has proven and probable reserves of 9.5Tcf distributed over three blocks. Gas deliveries from the JDA were initially scheduled to start by mid-2002, but were postponed due to serveral delays in the construction of the pipeline. As per the original contract signed between the sellers of the JDA gas and buyers (PTT plc and Petronas), Petronas is to take delivery of the gas in the first five years at 390,000MMcf/d. PTT will buy gas in the
second phase for five years at 450,000MMcf/d.
(Story courtesy of

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