Oct. 13--The Electricity Generating Authority of Thailand is considering investing 8 billion baht to double the capacity of the Lam Ta Khong hydropower plant to 1,000 megawatts to cope with frequent gas supply shortages.

Governor Sombat Sarntijaree said Egat is conducting a feasibility study on doubling the capacity of the Nakhon Ratchasima plant. If completed in time, the change will be added to the authority's new 15-year power development plan which is currently under review.

The state-run utility has had three gas supply disruptions since August, which caused damages of more than one billion baht, as Egat had to run generators by hydropower, diesel, fuel-oil or gas which was purchased from more expensive-than-normal sources.

This caused a loss of two satang of fuel tariff per kilowatt hour (unit), but Egat is in talks with the Energy Ministry and PTT, the country's sole natural gas pipeline operator, over compensation.

As a result, Egat recently raised its emergency fuel-oil stock to five days of daily power plant demand from three.

PTT reported to Egat on Oct 10 that its Bongkot gas field needed to extend its gas pipeline repair period to Oct 21 from an previous shorter estimate.

"Until the repair is complete, we have been using fuel-oil to replace what is usually 400 million cubic feet a day of gas supplies," said Mr Sombat.

For the period, Egat expects to use approximately 82 million litres of fuel-oil, a cost of 700 million baht.

PTT suspended supplies from Bongkot to repair the pipeline.

Bongkot is operated by PTT Exploration & Production Plc, which owns 44.5 percent of the field, while a unit of French-based Total SA holds 33.3 percent, and a unit of BG Group Plc has 22.2 percent.

In another development, Egat signed a joint venture yesterday with Mitsubishi Heavy Industries for a new gas-turbine repair centre in Thailand.

Egat and Misubishi both control 45 percent of the company, while Ratchaburi Electricity Generation Holding Plc holds 10 percent of the new firm which is named Egat Diamond Co.

Ken Kawai, deputy general manager of Mitsubishi Heavy Industries, said the group has sold more than 200 gas turbines across Asia, including 20 in Thailand.

While power generation producers will provide technology transfer to the Thai utility, Egat will give support by providing facilities and human resources for the new venture.

The firm has 830 million baht in registered capital and will start operation in 2011, with full capacity available by 2014.

The centre will cover 18 countries in the South Asia, Southeast Asia and Oceania regions.

Shares of PTT closed on the Stock Exchange of Thailand at 270 baht, up one baht, in trade worth 1.36 billion baht.

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