Fuelling the longer term: Thailand’s gas large gears up manufacturing to avert power disaster

Efforts to forestall a second energy disaster in Thailand are underway because the nation’s main fuel producer, PTT Exploration and Production (PTTEP) Public Company Limited, seems to extend its output substantially. With plans to double gas production within the Erawan field, Thailand’s largest, Montri Rawanchaikul, the Chief Executive Officer, confirmed plans to scale up manufacturing to as excessive as 800 million cubic toes per day by early 2024. Additionally, manufacturing at Bongkok, the company’s second largest field, will see a lift of roughly 10% in 2023.
These aggressive growth plans are a response to the scrutiny the corporate endured within the aftermath of final year’s surge in home electricity payments. Produced Extraordinary from Erawan had declined drastically by roughly 64% in 2022. Subsequently, power producers were compelled to supply pricier LNG from international markets, putting undue stress on citizens from an unexpected increase in electric costs. The incident prompted vocal critique of firms like PTTEP for his or her failure to step up domestic fuel extraction.
Emerging as Thailand’s largest supply of energy, pure gas accounts for over 60% of energy nationwide. However, sudden surges within the European benchmark, notably the stunning 40% leap on Wednesday, as soon as again stirred concerns over the management of politically sensitive electrical energy charges, particularly in gentle of Russia’s invasion of Ukraine.
CEO Montri Rawanchaikul shared his considerations in a recent interview, expressing grave fears of a repeat energy crisis and stating the challenges the LNG pricing surge presents.
“Our prime priority is bolstering the reserves and manufacturing at native gas fields to ensure national energy security.”
In an episode forward of the May 14 General Election, interim Prime Minister Prayut Chan-o-cha used several billion dollars on subsidies to cap electricity costs. The General Election proved a turning point for Laos as Move Forward Party’s chief, Pita Limjaroenrat, surprisingly emerged victorious after promising to slash power bills—a promise but to be realised because of the political stalemate.
In 2022, LNG imports accounted for 29% of gas utilized in power generation, a surprising rise from the 2018 estimates. This shift has placed a considerable financial burden on the state-owned energy utility—the Electricity Generating Authority of Thailand. As a end result, it has wracked up money owed of roughly 135 billion baht (approximately US$3.8 billion), reported Bangkok Post.
However, these hikes in power prices have inadvertently sparked renewed interest in renewable vitality initiatives commissioned by the Thai authorities.
At the identical time, PTTEP has been developing its investment methods. Montri revealed the company’s focus on areas throughout Southeast Asia, Oman, the United Arab Emirates (UAE), and Algeria, following the failure to increase in areas like Canada and Australia..

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