Thai-Malaysia gas pipeline project to be operational within 2 years

The controversial $ 1.5 bn Thai-Malaysia Gas Pipeline project, which has been given the nod to proceed, is expected to be operational within two years once construction commences. Construction of the project, which includes a gas separation plant should have started on March 1 last year to meet the gas delivery date of the middle of this year.
But due to protests from affected villagers in Chana district, southern Thailand, the project has been delayed several times. Under the deal signed with Malaysia-Thailand Joint Development Authority in November 1999, Petronas will have to take delivery of gas from the Joint Development Area (JDA) from the second half of this year.
“It is anticipated that, once construction commences, the pipeline will be operational within 24 months,” a Trans Thailand-Malaysia (TTM) official said. TTM was set up by Petronas and its joint venture partner PTT to undertake the gas pipeline project.

The official said the Thai government had issued an announcement on the decision to proceed with the project with changes in its route pipelines. The official said the Thai government had decided to continue the construction of the Thai-Malaysia Gas Pipeline project but it would be rerouted by about 5 km from Chana district to avoid adverse environmental and societal consequences.
“As part of the decision to allow the project to proceed, the Thai government has ordered that the landing site be relocated within a 5 km radius of the originally proposed location,” the official said.
The 325 km pipeline had been slated to pass through five villages at the palm-ringed coast, 950 km south of Bangkok. A gas separation plant and an adjacent 20,000 ha industrial zone would also be built in the area.

The official also said TTM need not do any additional environmental impact assessment (EIA) study following the rerouting of the pipeline. “The 5 km radius is within the area that EIA had already been performed, therefore the relocation would not result in the requirement of an additional EIA,” the official said.
Asked on additional investment in view of the new route, the official said the company is in the process of studying the matter.
“Once a decision has been made on the location for the new landing site, which will be based solely on minimising the impact, if any, on the environment and the livelihood of the local communities, the company would need to discuss with its consultants and potential contractors whether there will be any cost impact,” the official said.

Earlier reports said that the alternative route of the controversial Thai-Malaysian Natural Gas Pipeline will cost $ 5 mm more than the existing proposed route. But the cost of the new route would not be much different from that of the current one, which costs about $ 1 bn.
PTT deputy managing director Prasert Boonsamphan was quoted as saying that the rerouting of the gas pipeline meant that the length of pipeline on land would be shortened from 87 km to 83 km, while the length under the sea would increase from 227 km to 280 km.