Year 2008

 November 2008

Thailand faces gas supply test

ENERGY

POST REPORTERS

Thailand's natural gas reserves are expected to run out in 18 years so the country must step up attempts to secure future supplies, Energy Minister Wannarat Channukul said yesterday.

Although Thailand has an adequate supply to support economic growth for several years, it should explore reserves to ensure security, Mr Wannarat said after meeting with the committee on energy security management.

The committee, chaired by the minister, discussed current energy supply as part of drafting a preparation plan for the country's future security.

"Eighteen years is not that long. Indeed, we cannot feel safe with this [reserve volume]. Even though the PTT Group does a very good job in seeking more supply, we still need to join hands to ensure our energy security for the generation ahead," said Mr Wannarat.

Reserves have been calculated on an assumption that national consumption will average 2,835 million standard cubic feet per day (mmscfd).

Yesterday, PTT Exploration and Production, the national energy exploration flagship, announced the discovery of huge reserves from all of its 13 wells drilled in the M9 gas field in Burma.Total proven gas in the M9 block is 1.38 trillion cubic feet a day. Thailand's allocation is 240 mmscfd and Burma's is 60 mmscfd. PTT hopes to supply Thailand from these reserves in 2013.

In addition, Thailand's third gas pipeline has recently been completed, bringing capacity up to more than 3,000 mmscfd. PTT Plc, the sole gas supplier, also has 1,000 mmscfd from Burma that can be used in case of disruptions.

Mr Wannarat added that other types of fuel needed to be considered, such as nuclear fuel, coal, biomass and renewable energy as the country currently relies on gas for over 70% of electricity output.

The ministry had earlier set a target of cutting the country's reliance on gas to 50% over the next decade.

By Bangkok Post

November 15, 2008

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