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Thai-Malaysia gas pipeline controversy causing costly delays

HAT YAI, Thailand Violent protests over a proposed gas pipeline linking Thailand and Malaysia with an offshore field have caused long and costly delays despite both governments' determination to proceed.

Two thousand villagers clashed with Thai police ahead of an historic joint meeting here Sunday of the Thai and Malaysian cabinets, leaving dozens injured in the latest of a series of angry demonstration over the project.

Thailand's government has repeatedly vowed to override the concerns of residents and environmentalists who say the project will destroy fishing grounds and cause other ecological damage.

But the first stage of the pipeline, originally due to begin operation this year after being constructed at a cost of 1.0 billion dollars, has still not come on line.

Under the scheme managed by Thai oil and gas giant PTT Plc. and Malaysia's national energy firm Petronas, the gas would come ashore at Songkhla province in southern Thailand and be distributed by pipeline to both countries.


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