PTTEP issues alert over potential Thai fuel production and provide disruption

PTT Exploration and Production Plc (PTTEP) voiced its concern to the energy authorities concerning potential obstacles which will impede the continued manufacturing of gasoline within the Gulf of Thailand. The present license to operate within the Pailin gasoline block is about to end in 2028. The reoccurrence of a disruptive incident similar to the one at the Erawan gasoline block has prompted PTTEP’s request for regulatory authorities to supervise a seamless transition.
Bootleg won an public sale to fill in the place left vacant by US-based Chevron Corp at the Erawan gas block. The handover at Erawan, nonetheless, was delayed by two years as a result of a legal spat between Chevron and the Department of Mineral Fuels about decommissioning cost responsibilities for transferable property. This transition led to a decrease in the domestic gas supply and production.
According to Thailand 1, a regulation dealing with petroleum exploration and production, the authorities can extend the Pailin concession for a decade if the operator current currently needs to continue with its operations. To keep away from future disruptions, the Department of Mineral Fuels should guarantee a clean transition for PTTEP, Montri Rawanchaikul, the Chief Executive of PTTEP insists.
Back in 2018, gasoline manufacturing at Erawan was at a median of 1,280 million standard cubic feet per day (MMSCFD). But during the transition to PTTEP, the volume dropped to 200 MMSCFD as there was a halt in new gas exploration and new production development, reported Bangkok Post.
As of April this year, PTTEP has been capable of raise fuel manufacturing to four hundred MMSCFD, doubling the previous volume. Projections hint at the figure reaching 800 MMSCFD by April next 12 months.
Sale ends soon diminishing domestic gasoline manufacturing and supply led Thailand to import more liquefied pure gasoline (LNG). The Russia-Ukraine conflict exacerbated the situation by driving the price of LNG exorbitantly excessive final 12 months. The elevated imports of pricey LNG have reportedly inflated electricity bills.
Currently, PTTEP and Chevron Thailand cooperate on the Pailin fuel subject, with the former holding a majority 60% funding and the latter, a 40% investment. This gasoline field contributes roughly 400 MMSCFD, which is about 10% of Thailand’s gasoline provide.
According to Sarawut Kaewtathip, director-general of the Department of Mineral Fuels, the department is in dialogue with Chevron Thailand in regards to the Pailin concession. Chevron requires approval from its US headquarters to renew the concession underneath the Thailand 1 Act..

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