Chief of Thailand's Largest Petroleum Conglomerate Backs Integrated Gas Works.

Aug. 4--The incoming president of PTT Plc, Prasert Bunsumpun, plans to push ahead with the company's five-year, 100-billion-baht integrated business project, of which 90 percent involves its natural gas business.

Mr Prasert, who will take the helm of the country's largest petroleum conglomerate on Friday, said the key investment plans slated to start include the construction of its third offshore gas pipeline, the Sai Noi North-South power plants, and its fifth gas separation plant, to be located in Rayong.

In addition, the construction of the Trans-Thai Malaysia Gas Pipeline has finally begun, more than two years behind schedule due to disputes over its environmental impact, and is scheduled for completion in the middle of 2005.

On completion of the full investment plan in 2007, PTT will have an integrated gas operation, which in turn will increase the value of the company and provide more income, Mr Prasert said.

PTT plans to issue bonds worth 50 billion baht to refinance debt during this year and next.

Mr Prasert said that with lower debt costs from the refinancing, and expected profit gains during the next few years, PTT would probably not need new loans to finance its projects.

He added that earnings in the third and fourth quarters would exceed the level seen in the second quarter but less than in the first quarter.