Oleh/By		:	DATO' SERI DR. 
			MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	THE DEWAN SERI NEGERI, WISMA DARUL 
			AMAN ALOR SETAR, KEDAH 
Tarikh/Date 	: 	30/10/99 
Tajuk/Title  	: 	THE CEREMONY FOR THE SIGNING OF 
			THE GAS SALES AGREEMENT
			BETWEEN MALAYSIA-THAILAND 
			JOINT AUTHORITY 



It gives me great pleasure to be here today to witness the signing of the
Gas Sales Agreement for the gas produced from the Malaysia-Thailand Joint
Development Area as well as the Shareholders Agreement between Petroleum
Authority of Thailand (PTT) and PETRONAS for the Trans-Thai-Malaysia
Pipeline and Gas Separation Plant projects. 2. The idea to jointly
develop hydrocarbon resources in a disputed area and turning it into a
joint- development area, is a 'win-win' approach to resolve territorial
disputes between sovereign nations. The Joint Development Area (JDA) will
stand out in history as a testament to the unique and successful cross-
border co-operation between two neighbouring countries in resolving
territorial disputes and the ability of both countries to monetise
jointly and equitably the hydrocarbon resources found within their
overlapping claim areas thereby further strengthening and enhancing
bilateral sovereign relationships. 3. I have witnessed the signing of the
Heads of Agreement relating to the JDA Gas Sales in April 1998. It gives
me added pleasure today to witness the realisation of the intent in the
Heads of Agreement culminating in the Gas Sales Agreement which is signed
today between the joint sellers, Malaysia Thailand Joint Authority
(MTJA), Triton Oil Company of Thailand and PETRONAS Carigali (JDA) and
the joint buyers, PETRONAS and PTT for the sales of gas from Block A-18
of the JDA. 4. Under the agreement, the first gas from Block A-18 will be
delivered by mid-2002. The natural gas from the central processing
platform of Block A-18 will be brought via an offshore pipeline onto a
Gas Separation Plant in Songkhla for processing. The pipeline will be
extended onshore from Songkhla to the Malaysia-Thailand border and will
be connected to the Peninsular Gas Utilisation (PGU) pipeline at Changlun
in the State of Kedah. 5. The onshore and offshore Pipeline System and
the Gas Separation Plant will be jointly built, owned and operated by PTT
and PETRONAS on an equal sharing basis and will upon completion realise
the integration of the upstream activities in the JDA with the downstream
sector. 6. Today's signing of the Shareholders Agreement between PTT and
PETRONAS for the formation of two joint venture companies, one in
Thailand, The Trans-Thai- Malaysia (Thailand) Ltd, for the joint
ownership of the Pipeline System and Gas Separation Plant in Thailand and
another in Malaysia, the Trans-Thai-Malaysia (Malaysia) Sdn Bhd, for the
joint ownership of the Pipeline System in Malaysia indeed marks an
important milestone and a step forward in the bilateral relations between
our two countries. An important milestone because it is the largest
venture between Malaysia and Thailand and a step forward because upon its
completion, the Pipeline System will form an important building block for
the eventual realisation of the Trans-Asean Pipeline and Power Grid and
thereby directly contribute towards closer integration within
ASEAN. 7. The recent Asian economic crisis has taught us many lessons,
one of which is the need for us in ASEAN to proactively manage and
control our own destiny by the strategic charting of our present and
future activities. In this context, I believe the Trans-Asean Pipeline
and Power Grid represents one of such important strategic activities as
it will link and expand the region's existing pipeline and power
infrastructures to meet ASEAN's energy requirements in the next
millennium and to achieve a quantum leap in the economic development and
industrialisation of the ASEAN region as a whole through the efficient
utilisation of indigenous gas resources. 8. The foundation for the
Trans-Asean Gas Pipeline and Power Grid has already been laid with the
interconnection of Malaysia's Peninsular Gas Utilisation System with
Singapore. The Trans-Thai- Malaysia Pipeline will inter-connect a third
ASEAN country to the same pipeline system. In the not too distant future,
further linkages of national gas grids will be realised and I believe,
our vision of a Trans- ASEAN Gas and Power Grid will ultimately be
achieved. 9. I understand that the construction of the Trans-
Thai-Malaysia Pipeline and the Gas Separation Plant will require the
approval and consent of the various governmental authorities in both
countries in particular the EIA requirement. I hope that the respective
authorities will extend their fullest co- operation and assistance to
accelerate the development of these strategically important projects. The
projects, I believe, will play a vital role in the quest for clean and
efficient fuel to support the industrial and economic development of both
southern Thailand and Peninsular Malaysia. 10. In this respect, I would
like to take this opportunity to thank the Thai Government for the
support that they have provided to the JDA project as well as the
Trans-Thai-Malaysia Pipeline and Gas Separation Plant projects. I trust
that their unwavering support and the spirit of co-operation and mutual
understanding will continue during the actual implementation and
operation of the projects. On behalf of Malaysia I would like to assure
all parties that the Government will always cooperate and support joint
economic activities between Malaysia and Thailand. I also wish to
congratulate MTJA, Triton, PETRONAS Carigali, PTT and PETRONAS for their
hard work in successfully negotiating and agreeing upon the terms of the
various agreements involved. 11. In conclusion, I would like to extend my
best wishes to all parties involved for their efforts to help realise
these very important projects.