Posted on 12 Feb 2009
PTT will supply compressed natural gas (CNG) to steel firm Kasemsak Trading to replace its bunker oil consumption, in a pilot project for the distribution of gas outside the PTT pipeline network.
PTT yesterday signed a memorandum of understanding with Kasemsak Trading, whose plant is located in Phetchaburi province.
Chitrapongse Kwangsukstith, chief operating officer for PTT's Exploration and Production and Gas Business, said this was the first project in which it would distribute CNG by truck instead of by pipeline.
He expressed confidence that the new method could help operators reduce their costs, and said PTT was ready to expand CNG distribution by vehicle to other operators if the project were successful.
The CNG supply will help firms lower their operating costs as well as reducing the import of bunker oil. Moreover, the use of CNG will cut the level of pollution during the manufacturing process.
Chitrapongse said Kasemsak Trading could save 20 per cent on its fuel costs by switching from bunker oil to CNG.
Kasemsak Trading has entered into the Clean Development Mechanism, under which it is allowed to engage in emissions trading.
Kasem Jarusakulareeyakul, CEO of Kasemsak Trading, said that as his company is located about 50 kilometres from the PTT gas pipeline, if it wanted to use CNG it would have to bring it in by road. Despite the transportation cost, it works out cheaper than using bunker oil.
He said the company had invested about Bt20 million on CNG maintenance equipment and a CNG reducer.
PTT will supply 20 tonnes of CNG per day to Kasemsak Trading, starting from the end of this month.
Ratchada Sing, director-general of the Industrial Works Department, said his agency was ready to support all factories wishing to change from fuel oils to CNG, as doing so would help operators to reduce costs and cut emissions by an average of 300 tonnes per year.
