Energy policymakers plan to cut production from Thai gas fields and import more liquefied natural gas (LNG) to offset falls in domestic production, according to the Department of Mineral Fuels.
This will help extend gas production from Thai fields, which are depleting quickly. The 21st round of oil and gas contracts has been on hold since 2007, stalling exploration as energy demand continues to grow.
As of the end of 2015, proven petroleum reserves from all resources stood at 7.7 trillion barrels for daily use, or about five years.
Exploration of new resources has been delayed due to the disputed issue of how to share profits between the state and exploration firms.
Department director-general Veerasak Pungrassamee said the government planned to cut production capacity of gas resources from the Gulf of Thailand from 2,800 standard million cubic feet per day to 2,500 by next year.
That would help extend the production period of proven petroleum reserves until 2025.
The plan to reduce gas production will run at the same time as the development of the second LNG-receiving terminal by oil and gas conglomerate PTT Plc.
The terminal is due to start operating next year with a capacity of 5 million tonnes per year. The first terminal also has a capacity of 5 million tonnes but is now running at only around 60% of capacity at about 3 million tonnes.
Mr Veerasak said the two LNG terminals were due to run at full capacity of 10 million tonnes by next year in order to help store rising imported gas to offset falls in domestic production as planned.
The price of imported LNG has dropped in line with collapsing oil prices to around US$6-7 per British thermal unit (BTU), down from $15-20 when the oil price was above $100 a barrel, he said.
Mr Veerasak said the heating value of gas from imported LNG was at 1,300 BTU, slightly higher than that of the gas pool of the domestic gas grid of about 1,100 BTU.
That will have an impact on the operations of major gas-fired power plants such as those operated by the Electricity Generating Authority of Thailand, which will have to choose good-quality gas as feedstock.
The department also reported that the collapse of global oil prices to less than $35 per barrel has caused Coastal Energy International Co to suspend crude oil production in the Gulf of Thailand.
Production was previously halved to 60,000 barrels per day from 120,000 barrels when oil prices were high.
Mr Veerasak said the department would announce by May new petroleum exploration licences for investors.