LPG prices to rise

IN Brief

LPG prices to rise

ENERGY :Cooking gas prices may rise by one baht a kilogramme next month, driven by global increases in the price of liquefied petroleum gas (LPG).

The price of LPG from Saudi Arabia has risen by US$100 a tonne to $850 in the past month. Local gas separation plants and oil refineries have fixed their wholesale prices at $320 per tonne, meaning the domestic wholesale price is well below the world market price by 17 baht per kilogramme.

Energy Minister Piyasvasti Amranand said that in order to reduce the impact on consumers, the government would gradually float LPG prices over one year instead of removing caps all at once.

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Bond trade quiet

DEBT MARKET :Thailand's five-year government bonds declined yesterday, snapping a three-day gain, as investors demanded higher returns to buy short-term bills at a debt sale yesterday.

The Bank of Thailand auctioned 30 billion baht worth of 14-day bills at a rate of 3.09%, compared with 3.06% at the previous sale on Dec 20. The Finance Ministry will sell six billion baht worth of bonds maturing in 2023 tomorrow.

"Yields are creeping up," said Norrabodee Ongsakorn, a bond trader at TMB Bank. "We are seeing mostly interbank and local funds in the market."

The yield on the 4.25% note maturing in March 2013 rose one basis point to 4.70% while the price declined or 0.5 baht per 1,000-baht face amount, to 98.94.

Yields on shorter-dated notes are pressured as the central bank sells more bills, said Kobsidthi Silpachai, head of capital markets research at Kasikornbank.

Thai baht bonds have produced a return of 5.97% this year, the third-best performers in the 10 Asian debt markets tracked by HSBC Holdings. BLOOMBERG

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PTTEP outlines budget

PETROLEUM :PTT Exploration and Production Plc said yesterday that it would invest 286.9 billion baht in the next five years expanding domestic natural gas output and seeking fields overseas.

PTTEP is seeking sources of gas outside Thailand's borders, because some local gas fields have been less productive. It has 38 petroleum projects including gas exploration and production activities in Oman, Vietnam and Burma.

The company said it would invest 81.2 billion baht next year, 69.3 billion in 2009, 51.9 billion in 2010, 45.9 billion in 2011, and 38.6 billion baht in 2012.

PTTEP expects sales volume of 223,334 barrels of oil equivalent per day in 2008. The sales will probably rise to 250,194 barrels the following year, and to 261,491 barrels in 2010. Sales may peak at 278,299 barrels in 2011 before dropping to 251,778 barrels a day in 2012, it said.

PTTEP shares closed yesterday on the SET at 157 baht, up nine baht, in trade worth 1.84 billion baht. BLOOMBERG

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Spyker cars on show

AUTOMOBILES :Spyker will showcase two of its sports car models as part of its sponsorship of the Emporium World Fashion Showcase 2008 from Jan 31 to Feb 26. The Dutch maker of hand-built cars will introduce the 42.5-million-baht C8 Double 12S and the 28.5-million-baht C8 Spyder at The Emporium.

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First X2 resort opens

HOTELS :After two years of development, the first X2 resort has opened in Prachuap Khiri Khan. The opening is expected to spearhead tourism growth in the beachside town of Kui Buri, according to X2 chief executive Anthony McDonald.

Managed by Astudo Hotel & Resort Management, the resort has 27 villas sized from 70 to 255 square metres.

A second X2 resort is scheduled to open on Koh Samui in June next year.