PTT Exploration and Production Plc (PTTEP) expects gas production at the Erawan gas field in the Gulf of Thailand to increase to the normal level of 800 million metric standard cubic feet per day (MMSCFD) by April next year, part of efforts to increase domestic gas supply and reduce electricity prices.
A drop in gas supply from the Gulf led Thailand to import more costly liquefied natural gas (LNG) for use as fuel for electricity generation.
Gas production at Erawan decreased to 200MMSCFD during 2018 and 2020, when operatorship changed hands from US-based Chevron Corp to PTTEP.
The legal dispute between Chevron and the Department of Mineral Fuels over who would pay for the decommissioning of transferable assets led to a two-year delay in PTTEP's plan to enter this gas block to prepare for gas production.
Montri Rawanchaikul, president and chief executive of PTTEP, expects gas production to increase to 400-450MMSCFD by the middle of this year and 600MMSCFD within 2023.
The volume will gradually increase to 800MMSCFD within April next year.
Thailand needs to buy more LNG from the spot market at prices that are 3-4 times higher than those of domestic gas.
The amount of imported LNG increased from less than 10% to 20% during the drop in domestic gas supply.
This is blamed for causing the power tariff, which is used to calculate power bills, to soar to record-high levels of 4.72 baht per kilowatt-hour (unit) for households and 5.33 baht per unit for businesses, according to the Energy Regulatory Commission.
To reduce dependence on LNG, Mr Montri said PTTEP will also increase gas production from other key sites -- Arthit and Bongkot gas fields as well as Malaysia-Thailand Joint Development Area -- by 180MMSCFD.
He said the company allocated US$29.1 billion for its five-year investment between 2023 and 2027.
The budget will support its petroleum exploration and production business and a carbon dioxide capture and storage project.
In 2023, $5.48 billion will be spent to increase oil and gas production in Thailand and Malaysia.
Mr Montri said the company set up four new companies in automation and robotics to serve demand for artificial intelligence and robotic services for oil and gas infrastructure maintenance as well as drones for agricultural purposes.