Fuelling the longer term: Thailand’s fuel giant gears up production to avert power disaster

Ingredients to forestall a second energy crisis in Thailand are underway because the nation’s major 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 manufacturing to as excessive as 800 million cubic ft 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 enlargement plans are a response to the scrutiny the company endured in the aftermath of final year’s surge in home electricity payments. Produced gas from Erawan had declined drastically by roughly 64% in 2022. Subsequently, energy producers were compelled to source pricier LNG from international markets, inserting undue stress on residents from an unexpected increase in electrical prices. The incident prompted vocal critique of corporations like PTTEP for his or her failure to step up domestic gasoline extraction.
Emerging as Thailand’s largest source of energy, natural gasoline accounts for over 60% of power nationwide. However, sudden surges within the European benchmark, notably the gorgeous 40% leap on Wednesday, once once more stirred considerations over the management of politically delicate electricity charges, especially in light of Russia’s invasion of Ukraine.
CEO Montri Rawanchaikul shared his issues in a recent interview, expressing grave fears of a repeat energy disaster and mentioning the challenges the LNG pricing surge presents.
“Our top precedence is bolstering the reserves and manufacturing at local gas fields to ensure nationwide vitality safety.”
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 leader, Pita Limjaroenrat, surprisingly emerged victorious after promising to slash energy bills—a promise yet to be realised because of the political stalemate.
In 2022, LNG imports accounted for 29% of gas utilized in power era, a surprising rise from the 2018 estimates. This shift has placed a substantial monetary burden on the state-owned power utility—the Electricity Generating Authority of Thailand. As a result, it has wracked up debts of roughly one hundred thirty five billion baht (approximately US$3.eight billion), reported Bangkok Post.
However, these hikes in energy costs have inadvertently sparked renewed curiosity in renewable energy initiatives commissioned by the Thai authorities.
At the same time, PTTEP has been creating its funding methods. Montri revealed the company’s focus on areas throughout Southeast Asia, Oman, the United Arab Emirates (UAE), and Algeria, following the failure to expand in regions like Canada and Australia..

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