In addition, the collaboration will help generate clean power in a bid to appease local communities, PTT executives said in a statement yesterday.

Since the power plant's fuel source has been switched to natural gas, Thailand could also cut about 920 million litres per year of oil imported for power generation and worth at least 7.2 billion baht, or 180 billion baht throughout its 25-year gas purchase contract.

The far southern provinces of Thailand now import expensive power from Malaysia that costs 30% more than power from the Chana plant, which will save the country two billion baht a year.

Once the Chana power plant starts up, costs will drop to about 50.4 billion baht throughout the gas-purchase period. This would help the country's energy security and help the economy grow sustainably.

Clean-burning natural gas will help meet the steady new demand for power as more power plants are needed to serve the expanding economy. Energy costs comprise about 16% of Thailand's $206-billion gross domestic product, based on Energy Ministry data.

Energy Minister Piyasvasti Amranand said the co-operation between state energy agencies would help enhance national energy security, which is vital for economic development.

Besides making the best use of indigenous energy resources, Thailand should save foreign currency payments or it would need to import more oil, the prices of which are increasingly volatile.

PTT shares closed yesterday on the SET at 404 baht, down 12 baht, in trade worth 5.11 billion baht.