PTTEP sends a signal to the new government to prepare for the risk that gas production for Thailand will shrink, Erawan may repeat. Urge to speed up negotiations on Sapphire and Yadana sources. which will expire in 2028 The Department of Fuels reveals that talks with the private sector are waiting for "Chevron" in the United States to give the green light.
Mr. Montri Lawanchaikul Chief Executive Officer of PTT Exploration and Production Public Company Limited or PTTEP revealed that Concerns about the natural gas supply of Thailand in 2028 may depend on the import of liquefied natural gas. or LNG increased because the concession contract for the Pailin field in the Gulf of Thailand and the Yadana field from Myanmar will expire in 2028.
However, in the part of the sapphire source The concession can be extended for another 10 years, in which PTTEP holds approximately 60% of shares, with Chevron Thailand Exploration and Production Ltd. as the operator. the Negotiating with the Department of Mineral Fuels To extend the concession period for another 10 years until 2038, but still face the problem of guaranteeing the demolition if delayed, Chevron stops additional investment in petroleum drilling. Same as Erawan which if there is no clarity in the first quarter of 2024 As a result, gas production capacity in the Pailin field gradually decreased. From the current production capacity of about 400 million cubic feet per day. And if returning to accelerate the production of more gas, it will take 2 years. in order to drill holes to place more pipe welding platforms It is an event that repeats the source of Erawan. that PTTEP cannot enter the area before the end of the concession causing the production of gas to decrease This is because the original operator did not invest in additional production wells. As a result, expensive LNG has to be imported to power plants.
“PTTEP has informed that ready to cooperate to provide sapphire sources Able to maintain continuous gas production Today, gas production capacity in the Gulf of Thailand There are about 2,400-2,500 million cubic feet per day. If 400 million cubic feet of sapphire is lost per day It is equivalent to 1 missing Athit source, ”said Mr. Montri.
Yadana source The concession contract will expire in 2028, but it is a potential petroleum field that can extend the concession contract. Chevron holds approximately 41% of the shares in this area. Therefore, if there is no clarity on the concession renewal It may stop investing down. Currently this source It has a gas production capacity of more than 600 million cubic feet per day. Exported to Thailand more than 400 million cubic feet per day. and exported to Myanmar more than 200 million cubic feet per day
While the Zawtika field from Myanmar has a gas production capacity of 400 million cubic feet per day and is exported to Thailand at 280 million cubic feet per day. and exported to Myanmar at 90 million cubic feet per day by both sources of gas accounted for 17% of the demand for natural gas in Thailand and 50% of the natural gas demand power generation in Myanmar
“In 2028, Thailand's energy security is at risk from sapphire sources. and the Yadana field which will end the concession This problem will be a national energy risk. If you have to rely on the volatile LNG imports, recently, the price of LNG has risen past 40 USD per million BTU. from before decreased to 18-19 US dollars per million BTU,” Mr. Montri said.
Mr. Sarawut Kaewtathip, Director-General of the Department of Mineral Fuels, said the Department had a discussion with Chevron. about the case of the concession renewal of the Pailin field all along Which Chevron is willing to comply with the rules. But waiting for approval from the headquarters in the United States first. However, the Thailand 1 system is a law that is fair to investors. In the world, the department asked Chevron to evaluate the action plan. Both plans to continue and demolition plan which Chevron has not yet reported in full as specified by the Department However, in many sources from other operators. Negotiated an agreement to extend the concession according to the rights for another 10 years, with negotiations completed for 5 plots, such as Nam Phong field, Sirikit field, Phu Horm field. – Thai News Agency
Source: Thai News Agency