Natural gas prices expected to decline

BANGKOK, April 18 (TNA) - The prices of natural gas in Thailand are expected to decline in the coming months, after global crude oil prices have continued falling since late last year. Chakree Buranakanon, Senior Executive Vice President of PTT Public Company Limited (PTT), made the assessment on Saturday (Apr 18), pointing out, however, that natural gas prices on the domestic market would not change immediately after a change in global crude oil prices, as the prices are to reflect the cost of crude oil six to 18 months retroactively in line with natural gas purchasing contracts. Chakree said during the third quarter of 2014, the price of Dubai crude oil plunged to 51.9 US dollars per barrel, from 101.5 US dollars, causing the prices of natural gas to drop to around 290 baht per million cubic feet. According to the PTT executive, the natural gas prices on the domestic market are expected to continue retreating to around 250–255 baht per million cubic feet in the third quarter this year if crude oil prices remain stable. The PTT executive noted that the decline in natural gas prices would help cut the cost of fuel used for producing electricity and the natural gas used in the industrial sector and would eventually benefit local consumers. The PTT senior executive stressed whether there will be a change in domestic electricity fee is, however, up to the government's Energy Policy Committee's decision. (TNA)