Viraphol Jirapraditkul, acting director-general of the Department of Energy Business (EPPO), said yesterday after the meeting of the council that it had agreed with the Finance, Industry and Energy ministries to speed up establishment of ethanol plants.

The council meeting was chaired by Deputy Prime Minister and Finance Minister MR Pridiyathorn Devakula.

Viraphol said the announcement for establishing ethanol plants would supersede that concerning the management method for the liquor industry in 2000. The meeting also considered removing all obstacles to setting up ethanol plants, such as rules and regulations regarding applying for licences to set them up.

In addition, he said the council also agreed in principle with a memorandum of understanding to purchase electricity from Laos' first-phase 523-megawat Nam Theun project and third-phase 440MW Nam Nguem project. This will secure a combined 3.2 billion units of electricity for Thailand.

Yesterday's meeting also approved the extension of a schedule for using new standards of fuel quality-control and following the fourth-level Europe standard (Euro 4) from 2010 to January 1, 2012, because oil firms need at least five years to adjust their refineries.

The council also agreed with the EPPO's decision on a measure to encourage renewable power producers by offering them additional power prices. Hydroelectric power plants producing less than 50 kilowatts will receive an additional price of 80 satang a unit, while plants with a capacity of 50-200 kilowatts will receive 40 satang per unit.

Meanwhile, Energy Minister Piyasvasti Amranand yesterday revealed that crude oil had been discovered in field L10/43 by a concessionaire. Tests revealed the Arunothai-1 field in Sukhothai had a flow rate of about 930 barrels of crude oil a day at a depth of about 4,800 metres.

He said the concessionaire had closed the field temporarily, in order to prepare for drilling and exploration in two more fields in the middle of next year.