Thailand urged to speed up joint gas project with Cambodia

Energy experts urged Thailand to accelerate discussions on a joint gas production endeavour with Cambodia in the overlapping claim area (OCA). The call comes in light of the global shift towards clean energy, which could pose challenges to new petroleum projects due to their contribution to carbon emissions. Despite its initiation in 2001, the OCA negotiations have yet to progress significantly.

Parnpree Bahiddha-Nukara, Deputy Prime Minister and Foreign Affairs Minister declared today, February 7, that the matter would be discussed during Cambodian Prime Minister Hun Manet’s visit to Thailand. The OCA, a 26,000-square-kilometre area claimed by both nations, is believed to be rich in fossil fuels, potentially providing a fresh petroleum source for both countries, according to the Department of Mineral Fuels.

However, Pichai Naripthaphan, advisor to Prime Minister Srettha Thavisin and former energy minister, voiced concerns that continued delays in OCA petroleum development could hamper the project. He pointed out the increasing global campaigns against greenhouse gas emissions. Although gas is viewed as cleaner than oil, Pichai highlighted that future gas production may face hurdles as nations strive to cut carbon dioxide emissions from fossil fuels.

The new OCA discussions will not be starting from scratch, as guidelines for joint development have already been established to facilitate further negotiations. Both nations’ focus is on benefit sharing rather than border demarcation. Pichai anticipates the negotiations will pave the way for a gas business model akin to the Malaysia-Thailand Joint Development Area in the southern part of the Gulf of Thailand.

Khomgrich Tantravanich, Secretary-General of the Energy Regulatory Commission, expressed similar concerns about future gas exploration and production due to global climate change combat efforts. He noted that while gas constitutes about 60% of the fuels used for power generation in Thailand, the country is increasingly leaning towards renewable energy to curb carbon dioxide emissions.

Khomgrich also highlighted that businesses are keen to utilise more renewable energy to avoid non-tariff barriers on their exports to countries with policies targeting carbon-intensive manufacturing. He sees hydrogen fuel and nuclear energy from small modular reactors as promising clean energy sources, capable of competing with fossil fuels and intermittent renewable energy sources like solar and wind power.

PTT Exploration

Former permanent secretary of energy, Kurujit Nakornthap, cautioned against rushing the OCA discussions, which could impact decision-making. Montri Rawanchaikul, CEO of PTT Exploration and Production Plc, operator of the Erawan and Bongkot blocks, expressed hopes for significant progress from the new OCA talks, reported Bangkok Post.