BANGKOK, 25 May 2015 – The Ministry of Energy will be opening the registration for the 21st Petroleum Concession, while the electricity prices in 2022 might increase by an additional 0.85 baht per unit, says the Acting Permanent-Secretary.
The Acting Permanent-Secretary of Energy Ministry Kurujit Nakornthap has revealed the ministry has already submitted the amended draft Petroleum Act and Petroleum Income Tax Act to the Cabinet’s meeting, which has agreed to add alternatives to the exploration concessions in different systems.
The amended laws are now in the process of consideration by the Council of State, before being submitted for the consideration of the National Legislative Assembly and the National Reform Council.
The Ministry of Energy has been assigned from the National Energy Policy Council on 14 May 2015 to consider the procedures for the 21st Petroleum Concession bidding within a time frame of one year.
The Energy Ministry Acting Permanent-Secretary has said that registration might not take place in June as the amendment of the related laws and regulations will require some time. He said failure in natural gas source management will cause a disruption to production. Current production licenses will expire in 2022.
These disruptions might force entrepreneurs to refuse to continue their investments. This might cause Thailand to rely solely on importing LNG gas from foreign countries for electricity production, causing the electricity price to increase by 0.85 baht per unit. Imported LNG costs more than natural gas.
The Acting Permanent-Secretary has also mentioned the installation of the solar cells on rooftops, dubbed the solar rooftop project, saying that the National Reform Council has suggested that the installation of solar cells for domestic consumption in households will not require permits from the Ministry of Industry. The government sector might also consider buying the excess electricity at lucrative rate.
