PTTEP speeds up LNG plans
Source: 09-MAY-2008 Intellasia | Bangkokpost
May 9, 2008 - 7:00:00 AM PTT Exploration and Production will join with its parent, PTT Plc, to develop a liquefied natural gas (LNG) plant that will use supplies from its existing natural gas fields. The move comes as PTT has faced problems in securing long-term LNG supplies due to market volatility. PTT's 30 billion-baht LNG receiving terminal at Map Ta Phut is expected to be operational at the end of 2011 with an annual capacity of five million tonnes.

But supplies have only been secured for one million tonnes per year to date, through a contract with Qatar.

Anon Sirisaengtaksin, the PTTEP chief executive officer, said the company had exploration licences for 61 wells in 14 countries. Of these, 26 were in overseas fields, including in the Middle East and Africa.

He said rapidly increasing gas prices had helped increase the financial feasibility of having PTTEP and PTT establish an LNG plant on their own rather than depending on imported gas.

Having the two majority state-controlled energy companies develop LNG on their own would also help secure the country's natural gas resources.

A joint business unit between PTT and PTTEP would also help maximise the value of its petroleum fields, reduce costs and help maximise benefits in the use of staff and facilities.

Anon said PTTEP would also push to accelerate production at its M3, M4 and M7 fields in Burma's Gulf of Martaban. Co-development of the Natuna field with Indonesia's Pertamina would be stepped up as well to help meet Thailand's rising gas demand, particularly if the LNG project is delayed.

Gas demand is expected to jump to 5,000 million cubic feet per day by 2011 from 3,300 million now, led by increased use of compressed natural gas and demand from new and upgraded power plants over the next several years.

PTTEP also would increase investment in deep-sea reserves and heavy crude oil reserves, including potential fields in Venezuela and Canada. The company currently has proven reserves of 946 million barrels of oil equivalent, of which 80% are natural gas reserves.

PTTEP reported net profits of 8.9 billion baht for the first quarter, up 32% from the year before. Revenues rose 33% year-on-year to 28.374 billion baht. Average prices for oil and gas rose to US$48.24 per barrel in the first quarter, up 37% from the year before.

Volume is expected to rise to 223,000 barrels of oil equivalent per day (boed) this year from 182,431 last year through gas production the North Arthit field in the Gulf of Thailand and crude oil from Vietnam.

Shares of PTTEP closed yesterday on the Stock Exchange of Thailand at 179 baht, up five baht, in trade worth 1.79 billion baht.