Thailand To Get (Natural) Gasy

BANGKOK, Nov 8,2002; Reuters reports that the Thai energy firm PTT Plc will spend up to two billion baht ($46.21 million) over the next five years promoting the use of local natural gas by vehicles to reduce dependence on oil imports, officials said on Friday.

Energy Minister Pongthep Thepkanjana said PTT, 70 percent state-owned, would speed up construction of natural gas filling stations around the Thai capital of Bangkok to make it easier for vehicles to use natural gas instead of gasoline.

Thailand is a large gas producer and has reserves capable of meeting its own demand for 35 years, official data show, but the country spends $7.63 billion a year on oil imports, mostly from the Middle East.

"I've told PTT to increase the number of natural gas stations to 100 by 2007 from five now," Pongthep told a news conference.

He said the government would also offer financial inducements to drivers to switch to gas, but gave no further details. Thailand mainly uses its gas for electricity generation and around 70 percent of its oil consumption is for transportation. Thailand produces only small quantities of oil and imports about 90 percent of the oil it uses.

Pongthep said Thailand could save up to $120 million a year in imported oil bills by 2009 by getting drivers to switch to gas. PTT officials said they expected around 10,000 natural gas vehicles in Thailand, mostly in and around Bangkok, by 2007.