Thailand’s domestic gas supply has increased as production from the Erawan gas block in the Gulf of Thailand has risen to 400 million standard cubic feet per day (MMSCFD) from 210 MMSCFD earlier this year, according to the Department of Mineral Fuels.
PTT Exploration and Production Plc (PTTEP), which operates the block, plans to increase production to 600 MMSCFD in December, then raise it again to 800 MMSCFD in April 2024, said Sarawut Kaewtathip, the department’s director-general.
PTTEP was awarded a licence to succeed US-based Chevron Corp as the operator of the field. Its contract with the department requires it to raise output to 800 MMSCFD.
A drop in gas production at Erawan was among several factors that caused the country to import costlier liquefied natural gas (LNG), as gas makes up 60-65% of the fuel used for power generation in the country.
The increasing use of LNG was blamed for driving up electricity bills last year.
The power tariff stood at 3.78 baht per kilowatt-hour (unit) prior to the Russian invasion of Ukraine in February last year, which led to a surge in global oil and gas prices.
With more imports of LNG, the power tariff soared to a record high of 4.72 baht per unit towards the end of last year. Regulators lifted the tariff for businesses to 5.33 baht while householders paid the same rate of 4.72 baht during the first four months of this year.
The current tariff, applied between May and August this year, was set at 4.70 baht per unit for both businesses and householders as LNG prices have eased.
According to Mr Sarawut, PTTEP continues to drill more wells in the Erawan gas block after discovering gas at eight sites. As of May, the company had drilled 96 of the 273 wells called for in its long-term production plans.
In another development, UAC Global Plc, a chemical trader and renewable energy operator, has begun operating at the Arunothai and Burapha onshore petroleum blocks in Sukhothai province. Its oil and gas production stands at 100 barrels of oil equivalent per day.
The company expects to increase production to between 200 and 300 barrels of oil equivalent per day within this year, said president Chatchaphol Prasopchoke.
The company plans to use the gas in its two power plants with a combined generating capacity of 7 megawatts.
UAC Global bought the facilities from Ratch Group Plc at a cost of 205 million baht.