“Both companies are supplied with PTT’s output as raw materials - the merger will therefore help both reduce production costs," PTT Plc president Prasert Bunsumpun said.

“[We] also plan to improve two natural gas separation plants, and accelerate the construction of a third gas pipeline during 2006. [Our] pipeline in the Gulf of Thailand is already operating at full capacity, and [we] expect that natural gas sales for the company will steadily grow by 3-4%.”