Efforts to prevent a second power disaster in Thailand are underway as the nation’s primary gas producer, PTT Exploration and Production (PTTEP) Public Company Limited, appears to extend its output considerably. With plans to double gasoline production in the Erawan field, Thailand’s largest, Montri Rawanchaikul, the Chief Executive Officer, confirmed plans to scale up manufacturing to as high as 800 million cubic feet per day by early 2024. Additionally, production at Bongkok, the company’s second largest subject, will see a boost of roughly 10% in 2023.
These aggressive growth plans are a response to the scrutiny the corporate endured in the aftermath of last year’s surge in home electricity payments. Produced fuel from Erawan had declined drastically by roughly 64% in 2022. Subsequently, power producers were forced to supply pricier LNG from international markets, putting undue pressure on residents from an unexpected increase in electrical prices. The incident prompted vocal critique of companies like PTTEP for his or her failure to step up home fuel extraction.
Emerging as Thailand’s largest supply of energy, natural gas accounts for over 60% of power nationwide. However, surprising surges within the European benchmark, notably the stunning 40% leap on Wednesday, as quickly as again stirred considerations over the management of politically delicate electricity rates, especially in gentle of Russia’s invasion of Ukraine.
CEO Montri Rawanchaikul shared his issues in a latest interview, expressing grave fears of a repeat power crisis and pointing out the challenges the LNG pricing surge presents.
“Our prime priority is bolstering the reserves and production at local gas fields to make sure national energy security.”
In an episode forward of the May 14 General Election, interim Prime Minister Prayut Chan-o-cha used a quantity of billion dollars on subsidies to cap electrical energy prices. The General Election proved a turning point for Laos as Move Forward Party’s chief, Pita Limjaroenrat, surprisingly emerged victorious after promising to slash power bills—a promise yet to be realised due to the political stalemate.
In 2022, LNG imports accounted for 29% of fuel used in energy technology, a surprising rise from the 2018 estimates. Efficient has placed a considerable financial burden on the state-owned power utility—the Electricity Generating Authority of Thailand. As a result, it has wracked up debts of roughly one hundred thirty five billion baht (approximately US$3.8 billion), reported Bangkok Post.
However, these hikes in energy costs have inadvertently sparked renewed interest in renewable vitality initiatives commissioned by the Thai authorities.
At the same time, PTTEP has been growing its investment methods. Montri revealed the company’s focus on areas throughout Southeast Asia, Oman, the United Arab Emirates (UAE), and Algeria, following the failure to increase in regions like Canada and Australia..