PTTEP, GPSC banking on Myanmar gas plant
SET-listed oil and gas drilling firm PTT Exploration and Production Plc (PTTEP) has finalised a plan for a new gas-fired power plant in Myanmar with a capacity of 600 megawatts in collaboration with Global Power Synergy Plc (GPSC).
Both companies, affiliates of PTT Plc, are working to finish a feasibility study, prepare for a development plan and request permission from Myanmar's government.
Phongsthorn Thavisin, president and chief executive, said PTTEP's gas productions in Myanmar's Zawtika block and M3 field are expected to offer output for the new power plant.
PTTEP plans to increase gas production capacity from both resources to supply the new power plant in Myanmar.
For the Zawtika gas block, PTTEP aims to increase output to 400 million standard cubic feet per day (MMSCFD), up from 290 MMSCFD.
The M3 field is expected to produce gas at 60 MMSCFD in the first stage of production.
"The next step is a clearer direction from Myanmar's government on permission, but we do not expect it to take long," Mr Phongsthorn said. "Once the project is approved, GPSC will be the main developer and operator of the power plant, while PTTEP will provide support via its gas feed."
He said the project is considered to add value to PTTEP's gas output from Myanmar's resources, the Zawtika and M3 blocks.
PTTEP has six gas fields in Myanmar, both onshore and offshore: Zawtika (80% stake), Yetagun (19.3%), Yadana (25.5%), M3 (80%), M11 (100%) and MD-7 (50%).
The gas output from the six gas fields is fed to Myanmar and Thailand.
Turning to Africa, Mr Phongstorn said the final investment decision for Mozambique's Rovuma Offshore Area 1 will be made on June 18.
Earlier, PTTEP and other shareholders of the project postponed the development schedule because they were awaiting approval from Mozambique's central government.
PTTEP has a 8.5% stake in the Rovuma Offshore Area 1 project through a subsidiary, PTTEP Mozambique Area 1. Anadarko holds 26.5%, Mitsui E&P Mozambique Area 1 Limited holds 20%, Empresa Nacional de Hidrocarbonetos holds 15%, and BPRL Ventures Mozambique BV, ONGC Videsh and BEAS Rovuma Energy Mozambique each hold 10%.
The project is designed to be a production facility for liquefied natural gas (LNG), but the consortium for the project has yet to make a decision on the massive investment of roughly US$23-24 billion (728-759 billion baht).
The project is expected to start with 100 million cubic feet per day for the onshore LNG facility.
Mr Phongsthorn said the consortium has secured LNG sales and purchase agreements with buyers for a combined 11.1 million tonnes a year from a maximum capacity of 12.88 million tonnes.
"The first gas from the Golfinho and Atum fields will be produced within five years," he said.
The Rovuma Offshore Area 1 project is a high-potential resource as one of the world's largest emerging LNG supply hubs.
The location has substantial recoverable resources of 75 trillion cubic feet, with scalable offshore development expending up to 50 million tonnes a year.
The site has location and cost advantages, thanks to proximity to the shore and high-quality reservoirs with a flow capability of up to 200 MMSCFD.
The LNG production can be accessible for Asian and European markets.