PTT Exploration & Production Pcl (PTTEP), the exploration unit of PTT Pcl, is stepping up its gas output as part of efforts to avoid a new price-shock power crisis.
PTTEP CEO Montri Rawanchaikul said the state-controlled natural gas producer plans to double production at Erawan, its biggest field, to 800 million cubic feet a day in early 2024. He added that output at its second-largest field, Bangkok, will increase to around 10% in 2024.
The move follows criticism over higher domestic electricity bills last year, with Erawan production plunging 64% in 2022 after the company took over the field from U.S. energy major Chevron Corp. Power producers were subsequently forced to buy more expensive liquified natural gas (LNG) on international markets.
Over 60% of Thailand’s energy is produced via natural gas, with imports rising to meet demand. A 40% spike in the European benchmark on Wednesday (9 Aug) renewed concerns about containing politically sensitive electricity rates.
Imported LNG accounted for roughly 29% of the gas used to generate power last year, more than double the share in 2018. Rising energy rates have also accelerated plans to increase renewable generation. PTTEP is meanwhile focusing on investments in Southeast Asia, Oman, the United Arab Emirates (UAE), and Algeria. (NNT)
