PTTEP eyes Myanmar project
Subsidiary would run gas-fired power plant
SET-listed PTT Exploration and Production Plc (PTTEP) is proposing that Myanmar's energy policymakers develop and operate a large gas-fired power plant to tap surging demand for energy there.
If the project goes forward, it will be handled by PTTEP International Co Yangon Branch, the company's wholly owned subsidiary in Myanmar.
Piya Sukhumpanumet, general manager of PTTEP International, said the plan is to partner up with sister firm Global Power Synergy Plc (GPSC) on the project.
The national oil and gas conglomerate, PTT Plc, is the parent firm of both PTTEP and GPSC. GPSC is in charge of power business.
Mr Piya said the project will cost hundreds of millions of dollars and is being considered by policymakers in Myanmar.
"The project is set to add value to our existing exploration and production (E&P) business," Mr Piya said.
The site, which would be southwest of Yangon, will see an offshore gas pipeline connected to an onshore facility.
Potential capacity at the gas-fired power plant is being studied. PTTEP International projects that the feed from the Zawtika gas field in the Martaban Sea could bring capacity to 400 standard million cubic feet per day.
PTTEP has another gas block, M3, in the same sea that is set to supply gas soon.
"This move follows the business strategies of PTT group to seek out E&P opportunities abroad," Mr Piya said. "Oil refineries, petrochemicals, oil trading and non-oil business should go abroad together, and PTT Group has followed this path for two years."
In a related development, Mr Piya said Myanmar's Electricity and Energy Ministry is scheduled to open an auction for petroleum blocks.
Policymakers in Myanmar are rearranging the petroleum blocks, terms and conditions before opening the auction, which is intended to attract foreign direct investment from several sectors -- infrastructure, tourism, energy and industry.
Mr Piya said PTTEP International is ready to bid for new E&P licences for onshore and offshore blocks, as its business roadmap in Myanmar was laid out three decades ago.
To expand its E&P business, PTTEP International runs training courses for its employees and government officials from Myanmar, who attend these courses in Bangkok.
Nearly 50 officials from Myanmar have attended the courses, which include field visits.
"In Myanmar, PTTEP aims to hand over our assets to local people as much as possible because our business is growing fast here and more local staff will be needed," Mr Piya said.
PTTEP produces 70-75 kilobarrels of oil equivalent per day (KBOED) in Myanmar.
Myanmar houses the company's second-largest gas resources after Thailand, where total production is expected at 300 KBOED.
PTTEP operates the Yadana, Yategun and Zawtika sites in Myanmar, while five more blocks are undergoing the E&P process.
PTTEP shares closed Monday on the Stock Exchange of Thailand at 133 baht, down 50 satang, in trade worth 960.9 million baht.