Erawan Gas Field Output Holds Potential to Alleviate Electricity Costs, According to PTT
PTT Plc is on track to have the Erawan gas field in the Gulf of Thailand, also referred to as G1/61, fully operational by April 1, with an expected output of 800 million cubic feet of gas per day.
This output is anticipated to help lower electricity prices for May through August, keeping them under 4.20 baht per unit.
PTT Exploration and Production CEO Montri Rawanchaikul reported that the company is fast-tracking efforts to ramp up natural gas production at G1/61 after overcoming prior entry delays.
PTTEP, a PTTEP subsidiary, has sped up well installation, boosting the field's output to 400 million cubic feet per day and aiming for the full 800 million cubic feet per day by April.
These developments mean PTTEP won't incur fines related to these delays as it progressively increases output, which is currently at 200 million cubic feet per day, to meet the contract terms by April 1.
The Department of Mineral Fuels, led by Director-General Warakorn Prohmobol, acknowledged PTTEP's progress and the necessity for sustained production under the 10-year contract.
Should PTTEP fall short of the 800 million cubic feet per day target by year's end, the Energy Regulatory Commission indicates the company may import LNG at equivalent pricing to Erawan to avoid penalties.
The Commission also projects electricity rates between May and August to hover around 4.20 baht per unit, assuming contract fulfillment.
Ultimately, new electricity rates will be influenced by several factors, including the lifting of the power purchase adjustment (Ft) burden from the Electricity Generating Authority of Thailand (EGAT), currently at 100 billion baht, and fluctuating LNG spot prices.
PTT Exploration and Production CEO Montri Rawanchaikul reported that the company is fast-tracking efforts to ramp up natural gas production at G1/61 after overcoming prior entry delays.
PTTEP, a PTTEP subsidiary, has sped up well installation, boosting the field's output to 400 million cubic feet per day and aiming for the full 800 million cubic feet per day by April.
These developments mean PTTEP won't incur fines related to these delays as it progressively increases output, which is currently at 200 million cubic feet per day, to meet the contract terms by April 1.
The Department of Mineral Fuels, led by Director-General Warakorn Prohmobol, acknowledged PTTEP's progress and the necessity for sustained production under the 10-year contract.
Should PTTEP fall short of the 800 million cubic feet per day target by year's end, the Energy Regulatory Commission indicates the company may import LNG at equivalent pricing to Erawan to avoid penalties.
The Commission also projects electricity rates between May and August to hover around 4.20 baht per unit, assuming contract fulfillment.
Ultimately, new electricity rates will be influenced by several factors, including the lifting of the power purchase adjustment (Ft) burden from the Electricity Generating Authority of Thailand (EGAT), currently at 100 billion baht, and fluctuating LNG spot prices.
