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FK: Gas Asli Malaysia Thai - Fokus Khas
By Kapal Berita
22/10/2000 6:36 pm Sun
Ada dua rencana dalam mesej ini.
1) Asia Times: Special Report: Trans Thai-Malaysia natural gas project
2) Reuters: Malaysia-Thai offshore gas reserves huge
Compiled by Tony Allison
In 1979 Thailand and Malaysia signed a Memorandum of Understanding
to explore the possibility of jointly developing newfound gas
reserves in the Malaysia-Thailand Joint Development Area (JDA).
The JDA, 255 kilometers offshore in the Gulf of Thailand, was
established to resolve the overlapping claims between the two
countries over hydrocarbon resources in the continental shelf.
The JDA is divided into three blocks - Block A-18, Block B-17
and Block C-19, and it is administered by the Malaysian-Thailand
Joint Authority (MTJA), of which Malaysia and Thailand each own
50 percent. This body was established in 1990 to oversee and
plan for the development of the JDA.
The production contractors for Block A-18 are Petronas Carigali
(JDA) Sdn Bhd, a wholly-owned subsidiary of Petronas Carigali
of Malaysia, and Triton Oil Company of Thailand, with operations
controlled by the Carigali-Triton Operating Company (CTOC).
The production contractors for the other two blocks are Petronas
Carigali (JDA) Sdn Bhd and PTTEP International Limited, the
international arm of the Petroleum Authority of Thailand (PTT),
a state-run company.
Petronas and the PTT have agreed on a gas sales and purchase
agreement for Block A-18 under which each party will buy gas
from the JDA on a 50:50 basis and then bring their respective
share of gas back to Malaysia and Thailand. Gas purchases from
Block A-18 are expected to amount to 390 million standard cubic
feet per day and commercial delivery of gas is scheduled to
commence in 2002.
Thailand and Malaysia have committed to a US$2.42 billion contract
to share the costs of constructing a 255 kilometer offshore
pipeline to transport the gas to Thailand, where it will be
purified into sales gas and other fractions at a new gas
separation plant (GSP) to be built on the coast at Chana in
Songkhla province. Finally, a share of the gas would be piped
a further 93 kilometers to the border to link into the Malaysian
Peninsular Gas Utilization pipeline at Changlun in Kedah.
The PTT and Petronas have also agreed to explore possible future
cooperation for projects in southern Thailand and northern
Peninsular Malaysia utilizing the JDA gas.
Since 1984 Pentronas has been implementing a three-phase Peninsular
Gas Utilization (PGU) project, an infrastructure development
program to process and transmit natural gas fed from the fields
offshore Terengganu to end-users in the power, industrial and
commercial sectors. The entire PGU system now spans over 1,420
kilometers, comprising main gas transmission pipelines, supply
pipelines and laterals. The MTJA project is an important piece
of this development.
Because it is a cleaner fuel than oil or coal and not as
controversial as nuclear power, gas is increasingly becoming the
fuel of choice for many countries. The Association of Southeast
Asian Nations (Asean) has made the establishment of a trans-Asean
gas pipeline an integral part of its Asean Plan of Action on
Energy Cooperation for 1999-2004. The Thai-Malaysian pipeline
would play a vital role in the realization of this ambition.
The bigger picture
The southern Thai province of Songkhla, where the gas pipline
and the separation plant are planned to be built, is one of
the least industrialized regions in the country, with its
economy reliant on agriculture and fishing, and to a lesser
but important extent, breeding of famed cooing doves.
The government, however, has targeted Songkhla, along with
the southern provinces of Pattani, Satun, Narathiwat and Yala,
as a new industrial center for the country after the Eastern
Seaboard to the east of Bangkok.
Industrialization is seen as the key to fully developing the
economic potential of the Indonesia-Malaysia-Thailand Growth
Triangle (IMT-GT), an Asean initiative to narrow the gap
in the levels of development among the 10 member states
and to reduce poverty and socio-economic disparities in
Consequently, the Thailand National Economic and Social
Development Board (NESDB), a government agency primarily
concerned with setting the country's five-year development
plans, commissioned a consultancy to drawn up a "Master
and Action Plan for Development of the Penang-Songkhla
Economic Zone Through the Utilization of Thailand's
Natural Gas Resources".
The plan was prepared jointly with industry, business, and
government departments and it proposes a blueprint for
using gas to industrialize the south. It spells out proposals
to industrialize the five provinces by creating new
industrial estates, power plants, a new deep-water port
for the area, and a series of "special economic zones".
The trans-Asean gas pipeline (TASG)
There had been a steady increase in the number of gas
pipelines in Asean, with about 5,565 kilometers already
built and another 7,000 kilometers in the planning stage.
ASEAN's domestic consumption of natural gas is approximately
42 million tons of oil equivalent, 71 percent of which is
used for power generation.
A master plan "Study on Natural Gas Development and Utilization
in Asean" conducted by the Asean-EC Energy Management Training
and Research Center projects that demand will reach between
11.3 billion cubic meters per year (BCMY) to 12.8 BCMY in 2000.
This will further increase to between 38 BCMY and 69 BCMY in 2020.
The report notes that on completion of the TASG, the region's
dependence on imported energy can be reduced substantially, and
a shift from coal and petroleum will serve to avoid emission problems.
Asean has called for the establishment of a task force and the
formulation of a new master plan to help speed up the process.
The IMT-GT is one of several Asean programs to develop the
region, the others being the Brunei Darussalam-Indonesia-Malaysia-Philippines
East Asean Growth Area (BIMP-EAGA), the Indonesia-Malaysia-Singapore
Growth Triangle (IMS-GT), and the inter-state areas along the
West-East Corridor (WEC) of the Mekong Basin in Vietnam, Laos,
Cambodia and Northeastern Thailand within the Asean Mekong Basin
Development Cooperation scheme. Other zones of economic cooperation
in Southeast Asia include the Sub-Continental Economic Cooperation
(SEC) and the Economic Cooperation in the Greater Mekong Subregion
Established in 1994, the IMT-GT or the "Northern Triangle" encompasses
about 25 million people. It includes the territory of Aceh and
provinces of Riau, North Sumatra, and West Sumatra in Indonesia;
the states of Perlis, Kedah, Pulau Pinang, and Perak in Malaysia;
and the provinces of Satun, Narathiwat, Pattani, Yala, and Songkhla
The areas in which IMT-GT countries cooperate are trade and customs,
finance and investment, sea and air linkages, land transportation,
agriculture and fisheries, human resource development, tourism, energy,
and telecommunications. Already, transportation has improved with the
formation of new air linkages, cruise, shipping, and hauling services.
Reduced telecommunication fees in the IMT-GT zone have facilitated
increased business transactions in the agricultural produce, marine
product, and electronic good sectors.
The private sector largely drives these efforts, while the governments
of the three countries encourage investment efforts and joint projects.
The governments, therefore, have begun easing and harmonizing rules and
regulations relating to trade, investment, and transportation. With this
support, the private sector has succeeding in developing 48 joint venture
projects, totaling about US$4 billion.
Indonesian officials say that because Indonesia's national economic policy
tends to emphasize its advantage in agriculture-based activities, the
IMT-GT is seen as a good vehicle to develop the other resource-based
industries that are part of the IMT-GT.
Thailand plans, as outlined above, to develop industrial estates as production
bases to reach its development goals for both estates and triangles.
Malaysian officials report increased movement of labor and capital within
IMT-GT borders as neighbors have invested in Malaysia's food-processing,
wood-processing, and textile facilities. Malaysia's private sector has
invested in 14 industrial buildings (primarily textile factories) in
Indonesia's Medan industrial estates, hotels in Medan, and a cold storage
facility in Aceh. Malaysian companies have also facilitated trading
activities and promoted joint tourism packages.
A feasibility study prepared by the Asia Development Bank (ADB) in 1993
- Northern Malaysia has Penang and Langkawi as growth centers in industry and tourism.
- Southern Thailand, with Phuket and Hat Yai as its centers, are developed in industry
- Northern Sumatera, with Medan, Banda Aceh, and Padang as growth centers, have abudant
human resources and natural resources, and they have the potential to become economically
strong in tourism, agrobusiness and agroindustry.
The ADB proposed economic cooperation in six areas: agriculture, industry and trade,
investment, infrastructure, human resources development and finance. It found that
the success of the IMT-GT would be largely determined by two factors:
Triton, an Amercian oil company, has discovered four natural gas fields in Block A-18
of the JDA, covering 295,832 hectares, -- Cakerawala, Suriya, Bulan and Bumi.
Triton estimates the resource base to be 10.6 trillion cubic feet (Tcf) of gas.
The first production from the JDA is planned from the Cakerawala field.
The Cakerawala well discovered oil in relatively shallow zones, which flowed on test
at 3,000 barrels per day. Like the Gulf of Mexico, the Gulf of Thailand offers
favorable conditions for hydrocarbon drilling and development, and production
facilities used in the two locales are similar.
In April 1998, Triton signed a Heads of Agreement for the sale of natural
gas production from Block A-18. Gas deliveries under the first phase of
the multiphase project are expected to generate about US$5.5 billion in
sales. Triton estimates its share of these sales will average approximately
The agreement specified a formula for determining the price for gas delivered
at the platform. Under the formula, the base price is US$2.30 per million
British thermal units (MMBtu). The actual sales price, which will be
calculated and payable in US dollars, will be adjusted annually by a
formula that includes US dollar-denominated inflation and fuel-oil price
indices. According to this formula, the price, if calculated in April 1998
, would have been US$2.56 per MMBtu.
The sellers have granted the buyers a five percent price discount after
the delivery of 500 billion cubic feet, which should occur during the
fourth year of production. The price discount will be increased to 10
percent after a cumulative delivery of 1.3 trillion cubic feet. The
discounts are intended to give the buyers incentives to increase
The buyers of the gas are the Petroleum Authority of Thailand (PTT)
and Petroliam Nasional Berhad (Petronas) of Malaysia on a 50/50 basis.
In addition to Triton, sellers of the gas are Petronas Carigali (JDA)
Sdn. Bhd., a subsidiary of Petronas, and the Malaysia-Thailand Joint
Authority, the statutory body representing Thailand and Malaysia
in the JDA petroleum operations.
Other significant agreement terms
There also are plans to produce Block A-18's oil and condensate, which comprise about 15 percent of the block's hydrocarbon resource base. Condensate produced in association with the gas - about 5,200 barrels per day - will be sold separately.
Carigali-Triton Operating Company (CTOC), the operator of Block A-18,
in March 2000 picked a consortium comprising Technip of France,
South Korea's Samsung and Italy's Saipen for the the engineering,
procurement, construction and installation (EPCI) turnkey project.
It covers three wellhead platforms, a compression platform, a
central-processing production platform, a subsea pipeline, two
intrafield lines and a floating storage and offloading unit (FSO).
The letter of award for the contract was more than US$600 million.
Saipen is a subsidiary of the Eni Group, an integrated energy
company based in Milan which operates in the oil, natural gas,
power generation and petrochemicals industries as well as oilfield
services and engineering.
Saipen's share of the work, estimated at approximately US$65 million,
will cover the project management of the FSO and the engineering
and procurement of the mooring system, the FSO installation, the
laying of the subsea pipeline and intrafield lines, the installation
of the offshore platforms and the carrying out of the commissioning
Bechtel, the American engineering-construction organization, has
been selected to provide engineering, procurement, and construction
management services for the project.
The Trans-Thailand-Malaysia (TTM) Gas pipeline
The pipeline will consist of two parts, estimated to cost US$565
million in total investment. The first section involves an
offshore pipeline, 50 kilometers long and 20 inches in diameter,
from A-18 to B-17. The second line calls for a 255 kilometer,
30-inch diameter offshore line running eastward from A-18 to
Songkhla shore, an 86 kilometer, 30-inch diameter onshore line
from Songkhla to the Thai-Malaysian border and another nine
kilometer inland connection to the northern Malaysian state
The proposed two-unit gas separation plant near the pipe landing
area in Songkhla is expected to cost US$260 million. It will
comprise two units each with a natural gas processing capacity
of 375-425 million cubic feet per day (MMcfd). Construction of
the first unit is scheduled to come on line in 2001 and the
second in 2004-2005. Its main output will be LPG which would
be distributed in the five southernmost provinces of Thailand
and the northern part of the Peninsular Malaysia.
Petronas and the PTT have agreed to incorporate two companies,
one in Malaysia and the other in Thailand, on a 50:50 basis.
The companies, to be named Trans-Thai-Malaysia (Malaysia) Sdn
Bhd and Trans-Thai-Malaysia (Thailand) Ltd respectively, to build,
own and operate the TTM pipeline systems as well as the GSP. The
companies share the six senior executives - three from the PTT and
three from Petronas. For the first three years the president is
from Petronas, and the Chief Executive Officer from PTT - Apisit
In Thailand, demand for indigenous natural gas as fuel oil grew
by 10.4 percent in the first four months of 2000 to reach 273,800
barrels a day (b/d). Of the total, 195,500 b/d was used for power
generation by the Electricity Generating Authority of Thailand
(Egat), 53,400 b/d were used by Independent Power Producers (IPPs)
while Small Power Producers (SPPs) used 24,900 b/d. A further
approximately 68,000 b/d was used as fuel, transportation fuel,
cooking gas and petrochemical feedstocks. Supply slighltly
Malaysia currently produces about five billion cubic feet of
gas per day. As at 1 January, 2000, it had about 84.2 trillion
standard cubic feet of gas reserves, placing it 12th in terms
of world ranking.
Petronas: Short for Petroliam Nasional Bhd, is Malaysia's
national petroleum corporation incorporated on 17 August 1974.
It is wholly-owned by the government and is vested with the
entire oil and gas resources in Malaysia and entrusted with
the responsibility of developing and adding value to these
It has grown into a fully integrated oil and gas entity engaged
in a broad spectrum of petroleum and related value-adding business
activities in both the upstream and downstream sectors. It has
over 100 subsidiaries and associated companies, and the Petronas
Group operates in more than 20 countries and it is ranked among
the Fortune Global 500 companies.
Petronas is engaged in exploration, development and production of
crude oil and natural gas both at home and abroad. In Malaysia,
these activities are undertaken and managed through Production
Sharing Contracts (PSC) with a number of international oil and
gas companies as well as with subsidiary Petronas Carigali Sdn
Bhd. The current focus of development is on the various oil and
gas fields offshore Peninsular as well as East Malaysia.
Petronas has 37 producing oil fields and several others under
The Petroleum Authority of Thailand (PTT): The PTT was
founded in 1978 as a state enterprise under the supervision of
the Ministry of Industry by the Petroleum Authority of Thailand
Act. It is a fully-integrated business, covering exploration and
production and natural gas, which is done through PTT Gas, refining,
which is done through subsidiaries, downstream oil, through PTT
Oil, PTT International and subsidiaries, and petrochemicals, through
subsidiaries. It has subsidiaries in the Philippines, China,
Myanmar and Vietnam
Triton: Formed in 1962 in Dallas, Texas, Triton has participated
in the discovery of several major oil and natural-gas fields around
the world. Among Triton's notable discoveries are the Cusiana and
Cupiagua oil fields in Colombia, and the natural gas fields in the
Gulf of Thailand.
In addition to these major projects, Triton is actively exploring for
oil and gas in Latin America, southern Europe, Africa and the Middle
On July 29 the first hearing was held in Had Yai, but it was canceled before
it got underway for fear of clashes between opponents of the projects and
supporters. The leaders of the opposition group were a group of
Ramkamhang University students from Bangkok and people from the Campaign
for Popular Democracy (CPD), and local people.
Six topics had been planned for discussion over two days; benefits to the
nation, the south, and the local community, environmental effects, security
for people and property, public benefits and participation, the way of life,
and industrial development. The involved agencies were the NESDB, the
Department of Mineral Resources, the Office of Energy Policy and Planning,
the PTT, and the Ministry of Interior. The Malaysian consul for the region
was also invited to attend.
No date has been set for a new hearing. Once one is completed, the outcome
will be presented for consideration of the Office of Environmental Policy
and Planning under the Ministry of Science, Technology and Environment.
The EIA report shows that although it may be possible to mitigate against
the most severe environmental impacts of the pipeline, the social impacts
would be high.
Many local villagers - especially those in the village of Talingchan in
the Chana district, where the GSP is to be built - expressed deep
suspicions of the impact the project on their traditional way of life,
particularly the area's distinctive Muslim culture. Surveys carried out
as part of the EIA study show that the majority of villagers in Chana
(80 percent) thought there would be adverse impacts and that their
quality of life would drop as a result of the development. And 59.3
percent of those surveyed within a five kilometer radius of the planned
GSP did not want the project to go ahead.
A report released by the PTT claims that the project will help the nation
as it will ensure energy stability and create an attractive investment
environment in the five southern provinces. It will generate income and
foreign exchange from services related to the pipeline, which will
benefit the local community.
Some problems expressed:
A senior official of the PTT has said that public disapproval and failure
to pass an EIA could block the project. The contract with Malaysia's
Petronas contains a clause which makes revocation possible on the grounds
of force majeur. "If the EIA fails to win approval or an unacceptable
environmental impact is likely or the project is rejected at a public
hearing, it will be considered force majeur," the official he said.
The PTT has also said it might consider constructing a transmission
pipeline from the field to connect with the existing offshore natural
gas transmission system at the Erawan field, and then pumped to the
Eastern Seaboard for distribution to the central regions.
The Democrat-led government of Thai Prime Minister Chuan Leekpai has
indicated an unwillingness to force the issue. The Democrats draw the
bulk of their support from the south, and with elections due in
November 2000, they are mindful of upsetting voters there by
appearing to take sides.
(Special to Asia Times Online)
Malaysia-Thai offshore gas reserves huge
KUALA LUMPUR (November 1) : Malaysia and Thailand's
overlapping Joint Development Area (JDA) contains enough natural gas
to last at least 50 years, a senior official of the authority
administering the area said.
Ismail Suleman, president and chief executive officer of
Malaysia-Thailand Joint Authority, said the 7,250-square-km area of
the Gulf of Thailand had proven, probable and possible gas reserves
of 10 trillion cubic feet.
It's a very significant reserve. We're talking about gas
supply for easily 50 years," he told Reuters in an interview.
Malaysia and Thailand agreed in 1979 to jointly exploit
resources in the area while shelving negotiations over territorial
claims. The two countries split expenses and profits equally.
The state oil companies of Malaysia and Thailand, Petronas
and Petroleum Authority of Thailand (PTT), agreed on Saturday to
jointly purchase gas from Block A-18 in the JDA for 20 years.
Ismail said for Block A-18, Cakerawala gas field will be
developed with planned start-up date in second quarter of 2002 at an
initial rate of 390 million cubic feet per day.
The gas will be piped to Songkhla in southern Thailand,
where two gas separation plants will be built. The gas pipeline will
be extended from Songkhla to Malaysia's northern Kedah state.
Total investment for the development of the Cakerawala
field is estimated at US $800 million.
Ismail said production is expected to bring in $3.0 billion
in profits to both governments over the next 20 years. Subject to gas
demand, the second phase is expected to commence by 2005 where the
sellers will be required to supply an additional 300 million cubic
feet per day.
Fifteen gas fields have been discovered in the joint area
-- eight in Block A-18 and the rest in Blocks B-17 and C-19. To date,
the contractors -- Petronas Carigali (JDA) Sdn Bhd, Triton Oil Co of
Thailand (JDA) Ltd and Triton Oil Co of Thailand -- have spent a
total of US $364 million in the JDA.--Reuters