Thailand's Prime Minister Gives Approval to Big Gas Project by Phairath Khampha 13 May 2002 Thailand's Prime Minister Thaksin Shinawatra approved construction of the Thai-Malaysian gas pipeline, but postponed the Bo Nok and Ban Krut power plants for a couple of years. The prime minister on May 9, 2002 met with his military advisory team and representatives of the National Energy Policy Office and Electricity Generating Authority of Thailand to finalise the three projects, which had been held up by protests from environmentalists and local people. Others at the meeting included Deputy Prime Minister Pitak Intrawithayanunt, PM's Office Minister Pongthep Thepkanchana, Industry Minister Suriya Juengrungruangkij, Science, Technology and Environment Minister Sonthaya Khunpluem and Justice Minister Chaturon Chaisaeng. The meeting lasted three hours. Mr Thaksin was satisfied with "clearest ever" information and results of studies on the projects. Authorities look into the legal obligations set out in the pipeline contract signed by Thailand and Malaysia. They also compiling details of energy reserves. The prime minister had decided to go ahead with the Thai-Malaysian gas pipeline, a joint project between PTT Plc and Malaysia's Petronas. However, the route would be moved 20km, to run through navy land in Muang district, not Chana district, of Songkhla. The Bo Nok and Hin Krut power plants in Prachuap Khiri Khan would be temporarily shelved because the economic situation was not conducive to their implementation. Representatives of the developers of the two projects, Union Power Development for Hin Krut and Gulf Electric for Bo Nok, wERE invited for discussions about the decisions. In Kuala Lumpur, Prime Minister Mahathir Mohamad on the same day proposed the billion-dollar pipeline be built in Malaysia, to end delays in the joint project. Mr Mahathir said the pipeline linking southern Thailand with an offshore gas field being jointly developed with Malaysia could avoid Thailand completely, and end protests from environmental groups there. "Petronas has an agreement with them [Thailand authorities]. If they change their stand, that will affect the project," Mr Mahathir said after opening a US$18-billion oil and gas complex in northeast Trengganu state. "Maybe there could be other solutions," the Malaysian prime minister said. "If they can't pass through Thai territory, they could pass through Malaysian territory." Petronas, Malaysia's national oil firm, had a 50% share in the pipeline, but said it was willing to proceed alone so that it could transport the gas from the field in the joint development area, a formerly disputed offshore region. The pipeline was originally due to go into operation in 2002, with the first stage expected to cost US$1 billion.