PTT Plc, the national oil and gas conglomerate, is reviewing its gas business after seeing lower-than-expected consumption demand.
PTT's gas business tallied earnings before interest, taxes, depreciation and amortisation of 25.2 billion baht in the first quarter this year, representing 77% of the 32.6 billion baht total.
President and chief executive Tevin Vongvanich said gas demand has been slow because many independent power supply (IPS) operators have developed their own power generation units to feed operations.
"The revision will happen in tandem with energy policymakers' review of the national power development plan [PDP]," he said.
The PDP is a two-decade master plan for the power sector. The latest version is expected to be concluded by September.
Mr Tevin added liquefied natural gas (LNG) is a part of PTT's gas business, which is being reviewed.
PTT runs the LNG receiving terminal in Rayong's Map Ta Phut, which has a capacity of 10 million tonnes, but utilises only half.
The terminal is being developed for capacity expansion of up to 11.5 million tonnes at the same site, scheduled to begin operations next year.
PTT is also developing a second LNG receiving terminal at Rayong's Nong Fab for 7.5 million tonnes, which the government approved last April.
The second site is scheduled to begin operations in 2022.
Over the last four years, the IPS operators have expanded their capacities from a few dozen megawatts to 5,000MW as of May.
Policymakers estimate the fast growth is a result of lower development costs for solar photovoltaic rooftops, high oil prices and encouraging power distribution from IPS operators, replacing three state utilities.
The policymakers also support PTT's feasibility study on a floating storage re-gasification unit (FSRU) in the Gulf of Thailand and Myanmar's Martaban Sea.
Each site has a capacity of 5 million tonnes per year.
"The reviewed plan must be more flexible because the LNG and FSRU were set to supply the domestic market but they seem to have leftover capacity, which is not useful," said Mr Tevin.
He said PTT is looking into LNG trading because there are many new LNG players from Africa, the Middle East, Oceania and Southeast Asia.
PTT is planning to be an LNG producer in Mozambique through its subsidiary, PTT Exploration and Production Plc.
Mr Tevin said the plan review is being conducted at the same time as PTT's strategic thinking session, which is focusing on disruptive technology in the energy sector.