PTT assures adequate LNG reserves to beat heat in Thailand
With summer temperatures expected to soar, PTT Plc, Thailand’s national oil and gas conglomerate, has assured that its liquefied natural gas (LNG) reserves are up to the task of meeting the country’s increased electricity demand.
In Thailand, 60% of the fuel used for electricity generation is gas. As a result, PTT is prepared, with gas reserves of 6 billion cubic feet, enough to support power production for one month should the demand unexpectedly rise by between 1,400 and 1,500 megawatts a day.
An Energy Ministry official, who wished to remain anonymous, explained this equates to a month’s worth of LNG consumption, assuming daily gas usage is 200 million cubic feet. Should gas usage surpass this reserve level, PTT can source more LNG from the Middle East using a prompt shipment service, the official confirmed.
The need for potential additional LNG purchases was raised after the Energy Policy and Planning Office (EPPO) warned that the higher level of domestic gas production might not meet the increased demand during the hot season. Gas production from the Erawan gas block in the Gulf of Thailand, which has been in decline since 2018, is expected to double in April. However, this may not suffice to meet the anticipated surge in electricity demand.
EPPO’s projection is based on the anticipated intense hot season this year, a result of the El Niño weather phenomenon, which is known to increase temperatures and cause drought in many countries.
Last month, the state-run Electricity Generating Authority of Thailand (EGAT) also announced its plans to import more LNG to support power generation in the country. While this greater reliance on imported LNG should help ease concerns over power supply, it could potentially lead to higher power bills as global market LNG prices can fluctuate, reported Bangkok Post.
EGAT Governor Thepparat Theppitak had earlier expressed concern that a rise in LNG prices could affect EGAT’s plan to resolve its financial issues.
The Meteorological Department of Thailand anticipates average temperatures to be 30% higher than normal this month, with officials warning that temperatures could exceed 40°C.
