Thailand contains about 14.8 trillion cubic feet (Tcf) of proven natural gas reserves of which it produced 787 billion cubic feet (Bcf) in 2003. The country consumed 1029 Bcf in 2003 including imports from Burma. Much of the countrys natural gas is used for generating electricity. In 2001 Thailand completed its program for the conversion of almost all oil-fired electric power plants to natural gas. Demand for natural gas is expected to rise at a 5-6 percent annual rate over the next five years which represents a substantial revision downward from previous official estimates. Bongkot is Thailands largest gas field located 400 miles south of Bangkok in the Gulf of Thailand. Thailand began imports of gas from Burma in late 2000 used mainly at the Ratchaburi power plant. PTT also is in the process of building an extensive natural gas distribution network around Bangkok which will provide fuel for power plants as well as large industrial consumers.
Thailands economic difficulties in 1997-1998 which reduced natural gas demand along with rising domestic production forced the country to re-examine two natural gas deals signed with Oman and Indonesia. Planned imports of liquefied natural gas (LNG) from Oman and piped natural gas from Indonesias Natuna gas fields for which preliminary agreements had been signed in the mid-1990s were delayed. Development of Thailands domestic natural gas resources and the imports from Burma are expected to cover anticipated Thai demand for the next several years though LNG remains a long-term option for Thailand. Thai officials held preliminary discussions in 2004 with Omani and Iranian officials about possible future LNG projects.
ChevronTexaco which acquired Unocal in August 2005 is by far the countrys largest natural gas producer and has continued to increase its production with the development of new reserves. The Pailin gas field which came onstream in August 1999 added 165 million cubic feet per day (MMcf/d) to Thailands gas production. Unocal also started production at the Trat field in 1999. Unocal undertook a second phase of development at its Pailin field beginning in 2002 which brought production to around 330 MMcf/d.
ChevronTexaco is currently producing about 145 MMcf/d from its offshore Block B8/32. The company has put its estimated gas reserves in the block at 2.5 Tcf and has plans to expand production in the future to about 250 MMcf/d. Amerada Hess reported a new onshore natural gas find in northeastern Thailand in early 2003 which currently is under development. The company expects to begin production from the Phu Horm field in 2006.
The $1 billion 416-mile Thai-Burmese natural gas pipeline running from Burmas Yadana gas field in the Andaman Sea to an Electricity Generating Authority of Thailand (EGAT) power plant in Ratchaburi province was completed in mid-1999. A new connecting line also has been built linking Ratchaburi to the Bangkok area which provides for other uses for imported Burmese gas in addition to the Ratchaburi power plant.
One of Thailands most active areas for gas exploration is the Malaysian-Thailand Joint Development Area (JDA) located in the southern part of the Gulf of Thailand and governed by the Malaysia-Thailand Joint Authority (MTJA). The JDA covers blocks A-18 and B-17 to C-19. A 50:50 partnership between Petronas Carigali and Triton Energy Ltd. (now a subsidiary of Amerada Hess) is developing the Cakerwala field in block A-18 while PTTEP and Petronas Carigali also share equal interests in the remaining blocks. An agreement was signed in October 1999 for sales of gas from the block to PTT and Petronas. PTT has agreed to purchase 390 MMcf/d of gas over 10 years from the Cakerawala field the first JDA field to come on stream beginning in 2006. Cakerawala contains estimated reserves of 2 Tcf. A sales agreement for natural gas from the other blocks was signed in June 2005 with deliveries to Thailand of 270 MMcf/d beginning in 2008.
As the project has moved forward however it has become controversial in Thailand. The pipeline is to come ashore in Songkla province in Thailand with a connection overland to Malaysia. Strong opposition to the project developed in 2000 among residents of Songkla who have voiced concerns about the environmental impact of the project. The Thai government announced a decision in May 2002 to proceed with construction of the pipeline but on a slightly different route which avoids local population centers.
Other-Pipeline-Options
Two other possible international natural gas pipeline options also are under study. Officials from PTT have held preliminary discussions with Vietnamese officials about possible supply of natural gas from the Tay Nam field in Gulf of Thailand via a pipeline into Vietnams main industrial center Ho Chi Minh City . Talks also have been held with Burma and India about a possible pipeline interconnection between the three countries.