Fuelling the future: Thailand’s gas giant gears up production to avert power crisis

[webfact]

 

Efforts to prevent a second power crisis in Thailand are underway as the nation’s primary gas producer, PTT Exploration and Production (PTTEP) Public Company Limited, looks to increase its output substantially.

 

With plans to double gas production in the Erawan field, Thailand’s largest, Montri Rawanchaikul, the Chief Executive Officer, confirmed plans to scale up production to as high as 800 million cubic feet per day by early 2024. Additionally, production at Bongkok, the company’s second largest field, will see a boost of approximately 10% in 2023.

 

These aggressive expansion plans are a response to the scrutiny the company endured in the aftermath of last year’s surge in domestic electricity bills. Produced gas from Erawan had declined drastically by roughly 64% in 2022.

 

Subsequently, power producers were forced to source pricier LNG from international markets, placing undue pressure on citizens from an unexpected increase in electric costs. The incident prompted vocal critique of firms like PTTEP for their failure to step up domestic gas extraction.

 

Emerging as Thailand’s largest source of power, natural gas accounts for over 60% of energy nationwide.

 

However, unexpected surges in the European benchmark, notably the stunning 40% leap on Wednesday, once again stirred concerns over the management of politically sensitive electricity rates, especially in light of Russia’s invasion of Ukraine.

 

by Alex Morgan

Picture courtesy of PTTEP.

 

Full story: https://thethaiger.com/news/business/thailands-pttep-scales-gas-output-to-counter-potential-power-crisis

 

-- © Copyright Thaiger 2023-08-15

 

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[BKKBike09]

6 minutes ago, webfact said:

 

 

Efforts to prevent a second power crisis in Thailand are underway as the nation’s primary gas producer, PTT Exploration and Production (PTTEP) Public Company Limited, looks to increase its output substantially.

 

With plans to double gas production in the Erawan field, Thailand’s largest, Montri Rawanchaikul, the Chief Executive Officer, confirmed plans to scale up production to as high as 800 million cubic feet per day by early 2024. Additionally, production at Bongkok, the company’s second largest field, will see a boost of approximately 10% in 2023.

 

These aggressive expansion plans are a response to the scrutiny the company endured in the aftermath of last year’s surge in domestic electricity bills. Produced gas from Erawan had declined drastically by roughly 64% in 2022.

 

EXPLAINER: "Produced gas from Erawan had declined drastically by roughly 64% in 2022" - because the previous concession holder, Chevron, did not allow PTTEP access to the production assets until their concession term began in April 2022. And why did Chevron do that? Because they took exception to a Ministerial Regulation issued by the post 2014 coup government which said they would be on the hook for the decommissioning costs of ALL the Erawan assets at end of life, including actively producing assets (platforms, pipelines, subsea infrastructure) to be handed over to the new concession holder.

 

This all went to arbitration but I don't know whether it's been concluded now. 

[bdenner]

Back in the early 2000's I contracted to Chevron for 3 years in the Benchamas field. The government squeeze to control the whole of the Gulf operations was becoming obvious, even back then, and Chevron was going to pay the bin!

IMHO, mismanagement is Thailand's reward

[hotchilli]

15 hours ago, webfact said:

Efforts to prevent a second power crisis in Thailand are underway as the nation’s primary gas producer, PTT Exploration and Production (PTTEP) Public Company Limited, looks to increase its output substantially.

Dinosaurs increasing fossil fuel production... profits over diversity.

[huangnon]

2 hours ago, hotchilli said:

Dinosaurs increasing fossil fuel production... profits over diversity.

Plastics, tarmac, pharmaceuticals, etc. The list of things made from oil and gas is endless:

made from oil

 

Although I do have a PTT calendar in the office that repeats the mantra "Net Zero". ????

Edited August 16, 2023 by huangnon