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Business >> Friday July 11, 2008
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ENERGY

Liquefied natural gas to keep fishing fleet afloat

WALAILAK KEERATIPIPATPONG

Fishing operators in Pattani and Songkhla are ready to modify boat engines to accept low-cost liquefied natural gas (LNG) to keep their businesses alive. The southern provinces are the third and fourth largest fishing provinces in the country just behind Samut Sakhon and Ranong and have about 1,000 trawlers, which are expected to consume over 150 tonnes LNG combined each day.

''The volume is viable for PTT to set up a LNG plant in the area,'' said Mana Sripitak, chairman of the National Fisheries Association of Thailand.

The PTT subsidiary PTT LNG is studying the feasibility of building small-scale LNG plants at many sites; one of them is in Chana, a district in Songkhla. The company has also constructed LNG plants in Rayong and Sukhothai.

Mr Mana said he had surveyed the need for LNG among fishing operators to ensure consistent demand for PTT.

The changes would help fishermen and fishing operators to reduce costs from fuel, which sits at 60-70% now.

As of July 7, the price of LNG, natural gas that is converted to liquid form, was 24.79 per kilogramme, compared with 8.50 baht for NGV and 44.24 baht a litre for diesel.

''A trawler consumes about 800 litres of diesel a day, which is equivalent to 700 kilos of LNG. Considering the cheaper prices, LNG-powered trawlers could save up to half,'' he noted.According to Mr Mana, the government has set aside 740 million baht in soft loans to finance the conversion of diesel trawlers to LNG, which could bill fishermen about 700,000 to one million baht for the modification.

He said that normally a trawler needed three 1,000-kilogramme LNG cylinders, which are enough for a short trip.

''I suggested they adjust their fishing habits by shortening trips to five days or less to cope with the changes,'' he said.

Mr Mana said that he would also discuss with fishery associations in Samut Sakhon and Ranong before convincing PTT to set up a LNG plant in the area.

Jumpon Sanguansin, director of the Fisheries Department, said that cost of fuel has increased by more than 200% in the past five years while prices of seafood products had increased by only 10-20%.

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