LNG

French major Total has declared ‘force majeure’ on the Mozambique LNG export project over growing conflict in the north of the Southeast African nation, leading to workers being withdrawn and doubts increasing over whether security would return soon to the northern Cabo Delgado province.

Thailand PTT, the nation’s oil and gas company, said it was seeking to become a regional trader of liquefied natural gas and to increase small-scale LNG distribution in southeast Asia with the help of its current LNG import terminal and a second facility under development.

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.

The United Arab Emirates, the LNG producer that is expanding its natural gas and oil exploration in Abu Dhabi, has signed two concession agreements with Italian energy company Eni and its joint venture partner from Thailand, PTT Exploration and Production Company.

Jan 1 (LNGJ) - The Thai energy company, PTT Exploration and Production, said it planned to invest 16.17 billion Thai Baht ($490 million) to support the final investment decisions in key projects during 2019, including the Mozambique LNG joint venture in Offshore Area 1 of the Rovuma Basin as well as other foreign projects in Algeria and Vietnam. “During 2019 PTTEP will move forward through a more active strategy, including in the Gas Value Chain business,” said Phongsthorn Thavisin, PTTEP Chief Executive. He added that total capital expenditure during the year would be around $3.25 billion.

Thailand’s state energy company PTT Exploration and Production said that the Mozambique LNG export project it is a part of is progressing well towards a final investment decision in the first half of 2019 as the joint venture partners sold more volumes.

Italian energy engineering company Saipem was awarded a joint venture contract with CTCI Corp. of Taiwan to construct Thailand’s new Nong Fab LNG import terminal, the nation’s second regasification facility.

Qatargas, the leading liquefied natural gas producer, has signed an accord to cooperate in the LNG business with the main electric power generating company of Thailand, including being a future supplier of additional volumes to the Asian nation.


Anadarko Petroleum Corp., the US energy company and main stakeholder in the planned onshore Mozambique LNG export plant in southeast Africa, said it received approval from the government for its gas fields development plan.