National oil and gas conglomerate PTT Plc is increasing its purchase of natural gas by 450 million standard cubic feet per day (MMSCFD) after four coal-fired power plants in Thailand and Laos were not able to produce electricity as planned during peak hours.
The company plans to sell more gas, a key fuel for power generation, to other gas-fired power plants to ensure sufficient electricity supply as demand is high during the hot season.
PTT on Wednesday did not elaborate why electricity generation from the four power producers fell short of the planned production.
Two lignite-fired power plants run by the Electricity Generating Authority of Thailand in Lampang and Hongsa Lignite Co in Laos as well as two bitumen-fired power plants operated by BLCP Co and Gheco-One Co in Rayong have since May 7 seen their power generation drop by 2,750 megawatts, or almost 8% of power consumption during peak hours, according to PTT.
Hongsa Lignite Co is a joint venture between SET-listed Ratch Group and Banpu Power Plc. BLCP Co is co-owned by Banpu Power Plc and Egat subsidiary Electricity Generating Plc. Gheco-One Co belongs to Global Power Synergy Plc, PTT's power generation arm.
Usually power plants run operations at full steam and avoid machine maintenance or shutdown during the hot season.
Coal-fired power plants will be given the first priority to produce and supply electricity due to their lowest electricity cost.
Atikom Terbsiri, PTT chief for operation and upstream business group, said domestic gas suppliers may be allowed to supply additional gas because its price in Thailand is currently lower than that of imported liquefied natural gas (LNG).
Gas prices are important because of impact on electricity generation costs and power bills.
Pool prices for national gas in the country ranged from US$6.5-7 per million British thermal unit (BTU) while LNG prices in the spot market stood between $8.5 and 10 per million BTU.
In another development, PTT Exploration and Production Plc (PTTEP), the oil and gas drilling arm of PTT, on Wednesday announced its latest gas discovery in the first exploration well, Kulintang-1, in Block SK438, located off the coast of Sarawak, offshore Malaysia.
The discovery is under PTTEP's plan to continue exploring and producing petroleum in Malaysia.
The company expects its wholly-owned PTTEP HK Co (PTTEP HKO) will conduct drilling at another exploration well in the second quarter this year, said PTTEP chief executive Phongsthorn Thavisin.
Block SK438 is adjacent to blocks SK405, SK309, SK311 and SK314A, all of which are operated by PTTEP. The location provides an advantage for future development, including a potential for cluster development.
Block SK438 is located in shallow waters, approximately 108 kilometres off the coast of Bintulu in Sarawak.
"We are determined to explore further and make more oil and gas discoveries in Malaysia to serve future energy demand" said Mr Phongsthorn.