Thai-Malaysian Pipeline: Project Set for Completion in 2005

But opponents label as 'propaganda' a claim that they have eased their objections

The construction of a ThaiMalaysian gas pipeline and separation plant is expected to be completed in 2005, in part because Songkhla villagers have scaled back their opposition to the project, a PTT Plc executive said yesterday. The villagers have reacted favourably to the rerouting of the pipeline by five kilometres, PTT executive Prasert Boonsamphan said.

But a leading opponent to the pipeline labelled that depiction of events as "propaganda."

Seventy per cent of the Bt30billion pipeline project will be financed by loans with the remaining capital jointly raised by PTT and Malaysia's Petronas petroleum concern.

The construction was awarded to three contractors. A South Korean company will build the gasseparation plant, an Italian company will lay 89km of pipeline overland, while a Dutch firm is responsible for laying the 277km undersea pipeline.

The separation plant - with a production capacity of 500 million cubic feet per day - will be located on a 900rai plot between Tambon Sakom and Tambon Talingchan in Songkhla province's Chana district.

"The construction can proceed based on the original environmental impact assessment because the rerouting did not alter the pipeline significantly to warrant a new study," Prasert said.

However, Banjong Nasae, a key opponent of the project, said villagers remained opposed to the pipeline construction despite what he called "government propaganda".

"No officials from the government, the PTT and pipeline operator Trans ThaiMalaysia Co have reached any understanding with villagers opposing it," he said.