Bangkok: Pirapan Salirathavipak, Deputy Prime Minister, Minister of Energy, and leader of the Ruam Thai Sang Chart Party, has urged the new government to proceed with implementing a new Pool Gas formula to reduce electricity costs, emphasizing that the initiative should prioritize public benefit.
According to Thai News Agency, Pirapan posted on his Facebook page detailing the intricacies of the Pool Gas system, which combines gas from three primary sources to establish an average pool price. This system was developed to stabilize gas costs for electricity generation and industrial use in Thailand. The three sources include gas from the Gulf of Thailand, which is the cheapest at approximately 210 baht per MMbtu and accounts for 50% of the national demand; gas imported from Burma, costing around 324 baht per MMbtu and covering 10% of the demand; and liquefied natural gas (LNG) from abroad, which is the most expensive and varies in price, fulfilling the remaining 40% of the demand.
Pirapan highlighted the challenges posed by LNG, which, despite its high cost, is essential due to the shortfall in domestic production. He argued that the current Pool Gas system inadvertently raises electricity costs by incorporating more expensive LNG into the pool, suggesting instead that low-cost Gulf gas should be prioritized for electricity generation. The proposed formula aims to decrease electricity prices by utilizing cheaper local gas and only a minimal amount of LNG, potentially reducing gas costs for electricity generation from 356 baht per MMbtu to about 244 baht per MMbtu.
The proposal, initially put forward to the National Energy Policy Council (NEPC), received approval, and the Energy Policy and Planning Office (EPPO) has been tasked with studying its implementation. Despite facing criticism and opposition from some industrial stakeholders who benefit from the current system, Pirapan remains resolute in advocating for changes that prioritize the broader public interest.
Pirapan expressed confidence that the new government would continue with the policy, noting the Energy Regulatory Commission's support in reducing electricity costs over the past two years. He underscored the importance of this initiative, emphasizing that while anyone can implement such changes, the focus should be on benefiting the people.