Newly appointed Energy Minister Siri Jirapongphan has vowed to rev up the bidding process for the Bongkot and Erawan offshore gas blocks in the Gulf of Thailand.
Siri: Seeking balance in power plant mix
The concessions for the Bongkot and Erawan blocks are due to expire in 2022 and 2023, respectively.
Mr Siri, who was executive director of the Petroleum Institute of Thailand, said on his first day on the job that government should accelerate the bidding as soon as possible, as it has been delayed several times the past few years.
The Bongkot and Erawan blocks produce natural gas at a combined average of 2,000 standard million cubic feet per day, comprising 40% of Thailand's gas demand.
Policymakers decided the auction of the two gas blocks would use production-sharing contracts for the business model, but investors are still waiting for the terms of reference, which are due to be issued this month by the Mineral Fuels Department.
Mr Siri said the ministry is in talks with related firms about the details and schedule of the bidding, which he expects to be held soon.
In related news, he said the government will carefully consider the coal-fired power plants scheduled to be developed in Thailand's southern provinces after the projects received strong opposition from environmental and community activists.
Mr Siri said policymakers must balance the pros and cons of the power plants carefully because they affect the environment and energy security.
Power demand in the South is rising substantially because of growing tourism, while power supply is about to tighten, putting policymakers in a bind.
Another issue requiring Mr Siri's attention is a solution to the palm oil shortage as demand rises in both the food and biodiesel industries.
Thailand normally has a lower crude palm oil supply during the dry season, forcing the government to import crude palm from Malaysia and reduce the proportion allotted to biodiesel.
The food industry is given priority over biofuel. Biodiesel has a 7% blend of the alternative fuel in the diesel.