PTT Exploration and Production Plc (PTTEP), the oil and gas drilling arm of PTT Plc, has assured its shareholders that plans to transform mobility modes from oil-powered internal combustion engines to electric vehicles (EVs) will not affect its business as the change matches the company’s long-term strategy to produce more natural gas.
Crude oil will account for around 30% of total petroleum production as the company is determined to keep gas proportions at a higher level than crude oil, Krairit Euchukanonchai, chairman of PTTEP’s board, said during a shareholders meeting yesterday.
Thailand has around 15 years to shift towards cleaner energy resources, including natural gas which is considered to be cleaner than other fossil fuels.
Phongsthorn Thavisin, the company’s chief executive officer, said Thailand will need more gas for power generation because people are using more electrical equipment, driving up demand for electricity.
The Thai power industry currently depends on gas, which makes up 60% of fuels.
PTTEP’s new petroleum production projects for the next five years consist mainly of liquefied natural gas (LNG) production and gas supply through a network of pipelines.
Some key projects are Malaysia’s Block H which is scheduled to become operational this year, with a production capacity of 270 million cubic feet per day (MMSCFD).
Bongkot and Erawan gas blocks in the Gulf of Thailand, which will start production under renewed concessions in 2023, have a combined capacity of 1,000 MMSCFD and the volume will increase to 1,500 MMSCFD in 2025.
In 2024, an additional 490 MMSCFD will come from southwestern Vietnam and 13 million tonnes of LNG will be produced annually from a facility in Mozambique’s offshore Rovuma Area 1.
PTTEP has also diversified into the power generation sector by teaming up with its sister company, Global Power Synergy Plc, to study a 600-megawatt gas-fired power plant development project in Myanmar, worth US$2 billion (62.9 billion baht).