In a bid to combat climate change, almost every nation in the world has been quite busy looking for alternative energy sources. One such country is Thailand which, for the past couple of years, have been pushing its effort to diversify its power sector. Despite the good intention behind this strategy, it has caused Thailand’s domestic gas production to decline significantly over the past couple of quarters.
Thailand has been heavily pushing for the adoption of alternative energy sources. This is part of the country’s effort to cut its reliance on gas. Majority of the country’s gas needs are being fulfilled by imports as domestic production have significantly slowed down due to government regulations.
These figures have been acknowledged by the Thai government. As such, the state-owned PTT oil and gas company has placed a massive bid in order to gain rights to two of the country’s biggest gas blocks. These are a location in the regions of Erawan and Bongkot. PTT was able to outbid notable oil companies like Mitsui and Chevron.
In a report submitted by Fitch Solutions, the firm noted, “PTT will be expected to maintain a minimum production of 15.5 bcm per annum from the two blocks, some way lower than their current production of 21.7 bcm.”
Aside from oil, PTT is also set to improve its liquefied natural gas production from these two new regions. Many analysts have noted that PTT’s improved production should be enough to offset its imports of liquefied natural gas.
A significant portion of Thailand’s liquefied natural gas import comes from Qatar. This is part of PTT’s 20-year deal with the Middle East country which was signed in 2015. The deal states that Qatar will provide PTT with 20 metric tonnes of liquefied natural gas per annum.
With its venture in the Erawan and Bongkot regions, PTT should be able to fulfill all of its demands. Some are even speculating that the company can cut some of its imports now that its domestic production is slated to improve.
Based on Thailand’s power development plan, the government is planning to reach higher generation targets for clean coal technology. There is also a significant interest levied towards alternative energy sources like hydropower and renewable energy.
As Thailand slowly transitions to an alternative future, the government predicts that it should be able to cut its gas consumption and reliance by 1 percent on a year-to-year basis.