LNG

Thailand’s state-run energy firm, Public Company Exploration and Production (PTTEP), has ramped up offshore domestic natural gas production and the nation is expected to require less LNG after last year’s surge of more than 32 percent in additional cargoes.

PTTEP said production has increased at the G1-61 gas project comprising the Erawan, Platong, Satun and Funan fields in the Gulf of Thailand.

The Thai company said that sales volume for the G1-61 project had now reached 800 million cubic feet per day (MMscf per day) as planned in a country were gas-fired generation is the main power source.

“The increased gas delivery will help lower electricity prices and enhance national energy security,” said PTTEP.

Domestic gas expansion

Montri Rawanchaikul, Chief Executive of PTTEP, noted that PTTEP won the bid for the G1/61 project in the Gulf of Thailand from the Department of Mineral Fuels in 2018 and signed the production sharing contract (PSC) in 2019.

“After becoming the operator, PTTEP put all its efforts into speeding up the production rate and improving the integrity of facilities and equipment to ensure safety,” Montri explained.

“To date, 12 wellhead platforms and subsea pipelines were installed, along with the drilling campaign of more than 300 producing wells,” he added.

“The gas delivery increased to 800 MMscf per day on March 20, 2024, to meet rising energy demand and support Thailand’s economy,” the CEO stated.

The natural gas supply for Thailand comes from a mix of domestic production sources, LNG imports and pipeline gas deliveries from neighbouring Myanmar.

The two Thai LNG import terminals have a combined six storage tanks and are operated by a PTTEP subsidiary, PTT LNG.

The LNG import facilities are called Map Ta Phut Terminal 1 and Map Ta Phut Terminal 2 with nominal capacities of 11.5 MTPA and 7.5 MTPA respectively.

The country imported 11.55 million tonnes of LNG in 2023, up more than 32 percent year-on-year from the 8.72MT received in 2022.

In addition to the rising natural gas production Thailand also imports around 588 MMcf per day of natural gas from Myanmar.

Analysts said that the outlook for LNG imports in 2024 could be more subdued than in 2023 owing to the Ministry of Energy's plans to minimize LNG deliveries and reduce power costs.

Gas priority

“Increasing natural gas delivery from the G1-61 Project has been PTTEP’s priority over the past two years,” CEO Montri said.

“As gas from the Gulf of Thailand is a primary source of energy serving both households and industries, PTTEP, therefore has accelerated all operations,” he added.

“This achievement is attributed to the determination of all employees and supports from the government and related agencies to not only mitigate the impact of energy prices but also sustain energy security for the country,” Montri declared.

PTTEP will continue its annual workplan by installing new wellhead platforms and drilling the hundreds of new wells for the G1-61 project.

The CEO stated that for 2024 funds of around 30 billion Thai baht ($830 million) had been set aside for the G1-61 project work plan as it was one of the primary sources of Thailand’s energy security.

Thailand’s Public Company Exploration and Production (PTTEP), the Asian nation’s national energy provider with increasing natural gas and LNG stakes, said it was gearing up to develop a carbon-capture and storage (CCS) project in a gas field offshore Thailand.

Thailand’s energy exploration and production company PTTEP, a shareholder in Mozambique LNG, has announced a second successive natural gas discovery at a field in Malaysian waters offshore Sarawak as the nation also aims to expand LNG imports because of growing power and industrial demand.

PTTEP of Thailand, the oil and gas producer and a shareholder in LNG projects offshore Malaysia and Mozambique, remained confident of moving forward with its 2020 business plan under the current challenges, underpinned by Gulf of Thailand natural gas resources.

PTTEP of Thailand, the oil and gas producer and LNG stakeholder, said it was aiming to maximize the value of existing projects and was proceeding with the development of the Mozambican Area 1 project with its partners and the Algeria Hassi Bir Rekaizto venture to contribute to long-term growth.

PTTEP of Thailand, the oil and gas producer and LNG stakeholder in Mozambique and Malaysia, reported a first-half jump in net profits and in revenues amid higher prices and volumes as it advanced with a strategy of expanding its project portfolio.

Thailand national energy company PTT Exploration and Production (PTTEP), whose LNG assets include a stake in the Mozambique LNG export project in Area 1 of the Rovuma Basin, reported a 23 percent jump in first-quarter net income as it secured more exploration acreage and a floating LNG stake in Malaysia.

Thailand is securing its domestic production of natural gas in the Gulf of Thailand, as well as its pricing, while expecting more LNG volumes from Mozambique and elsewhere and constructing a new LNG import terminal.

Thai state energy company PTT Exploration and Production (PTTEP) said its development subsidiary was on track to take over operatorship from Chevron Corp. of the Erawan natural gas field in the Gulf of Thailand and has proposed a consumer price to the government equivalent to $3.70 per million British thermal units.

PTTEP takes over the Erawan field in 2022 to add to its operatorship of the nearby Bongkot natural gas field.

“The company is confident that its proposals will deliver benefits to all parties and ensure energy security to the country,” said Phongsthorn Thavisin, PTTEP President and Chief Executive, after the signing ceremony just held for the Production Sharing Contracts (PSCs) for the G1/61 field (Erawan) and the G2/61 field (Bongkot).

“The continuity of natural gas supply is the top priority of the government and the operators, we believe, as the benefits will be brought directly to the country and the Thai people. The state agencies are determined to smoothly proceed the transition of operations and we have already prepared for this process,” added the CEO.

For its LNG supplies, PTTEP is a 10 percent shareholder in the Area 1 licence of the Rovuma Basin offshore Mozambique held by Anadarko Petroleum of the US.

The Thai company said the first phase of LNG production in the southeast African nation is planned for 2024 with initial volumes of 12 million tonnes per annum.

Thailand is planning a second import terminal not far from its existing import facility at Map Ta Phut in the eastern province of Rayong.

The new Nong Fab terminal will have a maximum receiving capacity of 9 MTPA.

PTTEP said initial investments in the Gulf of Thailand domestic production would be around $320 million and would ensure production volumes from both fields.

The company plans to safeguard production volumes in the Bongkot and Erawan fields of at least 700 million cubic feet per day and 800 million cubic feet per day respectively.

The investment includes the drilling campaign of the exploration and production wells and the construction of additional wellhead platforms.

“From 2022 onward, about 80 percent of the natural gas production in the Gulf of Thailand will be under our operations,” said Phongsthorn.

“This means PTTEP will become the largest producer of natural gas in the country, demonstrating our success in carrying out the mission to establish energy security to Thailand,” he stated.

Phongsthorn explained that commitment in the PSC will benefit the state, the Thai people and the future revenues of PTTEP.

The CEO said a price constant of 116 Thai baht per MMBtu ($3.70 per MMBtu) had been proposed to the government.

“This is reasonable and will bring benefits to the state and the Thai people,” he added.

“Having the Erawan field in its portfolio will contribute higher gas production volumes as well as increased revenues for PTTEP,” he added with expectations of bringing down the operational costs by between 20 percent and 25 percent.

“Through the comprehensive analysis, we are confident that our proposals submitted in the bid will create mutual benefits to all relevant parties,” he stated.