Thailand's domestic gas supply has increased as production at the Erawan gas block in the Gulf of Thailand has risen to 400 million standard cubic feet per day (MMSCFD) from 210 MMSCFD earlier this year, according to the Department of Mineral Fuels.
Erawan operator PTT Exploration and Production Plc (PTTEP) plans to increase production to 600 MMSCFD in December this year, rising to 800 MMSCFD in April 2024, said department director-general Sarawut Kaewtathip.
PTTEP was awarded a licence to succeed US-based Chevron Corp to operate at the Erawan gas block.
The company is required to increase its production to 800 MMSCFD under a contract with the department.
A drop in gas production at Erawan was among several factors that caused Thailand to import costlier liquefied natural gas (LNG), as gas makes up 60-65% of fuels used for power generation in the country.
The higher use of LNG was blamed for driving up the price of electricity bills last year.
The power tariff was 3.78 baht per kilowatt-hour (unit) prior to the Russia-Ukraine conflict in February last year, which led to a surge in oil and gas prices.
With more imports of LNG, the power tariff soared to a record high of 4.72 baht per unit.
The power tariff for businesses continued to increase to 5.33 baht per unit, while households paid 4.72 baht per unit during the first four months of this year.
The current power tariff, applied between May and August this year, fell slightly to 4.7 baht per unit for businesses and households as LNG prices eased.
According to Mr Sarawut, PTTEP continues to drill more wells at the Erawan block after discovering gas at eight wells.
As of May, the company had drilled 96 of its planned 273 wells, based on its production plans.
In another development, UAC Global Plc, a chemical trader and renewable energy operator, has begun operating at the on-shore Arunothai and Burapha petroleum blocks in Sukhothai province.
UAC Global's oil and gas production is 100 barrels of oil equivalent per day (BOED).
The company expects to increase production to 200-300 BOED this year, said Chatchaphol Prasopchoke, president and chief executive of UAC Global.
UAC Global plans to supply gas to its two gas-fired power plants, with a combined power generation capacity of 7 megawatts.
The company bought the facilities from Ratch Group Plc at a cost of 205 million baht.
