(Source: Bangkok Post)
By Yuthana Praiwan, Bangkok Post, Thailand
Nov. 06--PTT Plc, the country's sole natural gas supplier, is calling on natural gas producers to step up their output to cope with higher demand amid a robust economic recovery.
All producers may need to lift production by 15% next year from 4,100 million cubic feet par day (mmscfd) at present, said Anon Sirisaengtaksin, CEO of PTT Exploration and Production Plc, the national energy conglomerate's exploration arm.
PTTEP produces about 33% of all the gas output in Thailand.
The need for more supplies reflects a second year of economic recovery, particularly in the power, industrial and transport sectors, said Mr Anon.
Gas consumption growth was flat in 2009 at about 3,500 mmscfd and is expected to grow by 14% this year and about 10% in 2011.
Natural gas accounts for 72% of all fuels used to generate electricity, followed by coal at 20% and hydropower at 4%.
In order to avert a possible gas shortage from accident or natural disaster in the pipeline grid, PTT and PTTEP are now collaborating to begin early commercial operation of the 320-mmscfd gas from PTTEP's South Bongkot field in the Gulf of Thailand in the first quarter of next year. Originally production had been scheduled to start in the second half of 2011.
A month ago, PTTEP also increased its gas production from the Malaysia-Thailand Joint Development Area (JDA) to 335 mmscfd from 300 to feed fast-growing demand.
"We pray every morning and evening in order to keep production running smoothly since demand and supply next year will be very tight," said Mr Anon.
In the longer term, he added, PTTEP was looking to diversify into non-conventional fuel exploration and production such as floating liquefied natural gas (FLNG), oil sands in Canada, very deep water petroleum resources and heavy oil in South America and Africa.
The company is conducting a feasibility study on FLNG at its Montara field in Australia. Next year it will look for a strategic partner for the development of FLNG.
"Every oil exploration company is now looking to unconventional petroleum resources because existing global oil and gas resources are becoming depleted," said Mr Anon. "Development of new oil and gas will more difficult because of rising costs and increased environmental regulations."
Shares of PTTEP closed yesterday on the Stock Exchange of Thailand at 187.50 baht, up four baht, in the trade worth 1.43 billion baht.
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