New Rules Seek to Reassure Investors in Thai Petroleum Authority.

Byline: Yuthana Praiwan

Sep. 3--New rules covering third-party access to transmission pipeline services will be released today in a bid to increase investor confidence in the forthcoming share offering by the Petroleum Authority of Thailand (PTT).

The rules would ensure that natural gas, one of the PTT's three core businesses, would remain competitive with other types of fuel for power generation, according to Piyasvasti Amranand, secretary-general of the National Energy Policy Organisation.

The PTT currently has a domestic monopoly over gas transmission. Investors have been seeking a clearer picture of the PTT's plans for further investment in the gas-supply business after the industry is fully liberalised next year.

"All relevant issues will be cleared up prior to the PTT's scheduled share float in November, regardless of whether the company can make its initial public offering," said Dr Piyasvasti. "The success of the PTT privatisation scheme depends on the market situation as well."

The introduction of third-party access to the PTT pipeline system is in line with a deregulation policy that will separate the transmission system from other activities to provide greater transparency, fairness and accountability. New investors as well as the PTT will have an opportunity to invest in the gas pipeline and supply businesses.

Third-party access will be introduced where excess capacity is available and on new pipelines. The PTT would retain the rights to operate the existing pipeline system that has currently maximised its capacity.