PTTEP forecasts 9% rise in petroleum sales due to expanded gas production

PTT Exploration and Production Plc (PTTEP) anticipates a 9% surge in petroleum sales in the coming year, largely due to the expanded gas production from the Erawan field in the Gulf of Thailand. The company’s President and CEO, Montri Rawanchaikul, revealed that the average sales for this year are anticipated to be around 464,000 barrels each day.

This increase in domestic gas supply implies a decrease in imported liquefied natural gas, thus insulating Thailand from the impact of global price oscillations which have the potential to hike the nation’s electricity bills. It should be noted that gas constitutes approximately 60% of the fuels utilised for power generation within Thailand, Montri said.

“Erawan’s significant contribution to our next year sales projections is due to the expected increase in gas production to 800 million standard cubic feet per day [MMSCFD] come April, a substantial rise from 600 MMSCFD in September.”

To buttress its business expansion in the following year, PTTEP revised its next year’s investment budget and decided to allocate US$6.72 billion. The company has committed a total of US$32.6 billion to investment projects from 2024 to 2028. These projects aim to extend oil and gas production domestically and internationally and back new petroleum development projects.

PTTEP is not limiting its expansion to Erawan alone. The company also intends to boost gas production at the Bongkot and Arthit gas blocks, as well as the Malaysia–Thailand Joint Development Area located in the Gulf of Thailand. Petroleum fields under development include Lang Lebah in Malaysia and Mozambique Area 1.

In its investment budget, PTTEP has reserved US$220 million for geological studies and the drilling of exploration and appraisal wells in Thailand, Malaysia, Oman and the United Arab Emirates.

A crucial part of the company’s business strategy is to attain sustainable growth by bolstering its petroleum exploration and production business, lowering greenhouse gas emissions and diversifying into new businesses, in readiness for an anticipated energy transition.

Previously, PTTEP had allocated US$2 billion to back its investment in offshore renewable energy development, carbon capture storage technology, and a hydrogen energy project.

Montri stated, To bolster growth, PTTEP is actively seeking investment opportunities in clean energy across various regions. He added that this strategy is in line with the company’s commitment to sustaining growth while contributing to environmental preservation, reported Bangkok Post.