Work is now progressing smoothly on the controversial Thai-Malaysian gas pipeline and it is expected to be completed in two years time after a long delay, a top oil official said today.

"There is now progress in the gas pipeline project. We are grateful for the Thai government for providing security in order for it to proceed," said Hassan Merican, president of national oil company Petronas.

Hassan said work on the project resumed in April and is expected to be completed in the first half of 2005. The original date of completion was October last year.

Hassan was speaking on the sidelines of a one-day Asean energy ministers meeting.

Ecological impact

Local residents along the pipeline in Thailand and environmentalists say the project will cause grave ecological damage.

Thai Prime Minister Thaksin Shinawatra has pledged to protect the workers set to lay the gas pipeline and build the separation plant in Chana district, where the pipeline is to come ashore.

Last December, 2,000 villagers clashed with Thai police, injuring dozens ahead of a joint cabinet meeting between leaders of the two countries.

Malaysia's Petronas and Thai energy giant PTT are equal partners in Trans Thai Malaysia Co (TTM), the operator of the long-delayed project.

Under the scheme, originally due to begin operations in 2002, the gas would come ashore in Songkhla and be distributed by pipeline to both countries.

The offshore rig is in place and pipes have been laid from the gas field towards the coast but the new infrastructure still awaits a link to the mainland.

The project is part of the trans-Asean gas pipeline aimed at ensuring energy security for the fast growing region which is currently heavily dependent on oil from the volatile Middle East. - AFP