Bangkok--Sep 28--PTTEP
In response to the Ministry of Energy’s call for Thailand’s natural gas to be increasingly utilized to meet Thailand’s energy demands. PTT Public Company Limited (PTT) and PTT Exploration and Production Public Company Limited (PTTEP) have entered into a LNG production test agreement. It is estimated that this agreement will reduce imports of diesel by 7.3 million litres per year or an equivalent value of 177 million Baht per year.
September 28, 2005, Mr Prasert Bunsumpun, President of PTT and Mr Maroot Mrigadat, President of PTTEP signed the LNG production test agreement the signing was presided over and witnessed by H.E. Mr. Viset Choopiban, Minister of Energy and Mr Nopadon Mantajit, Director-General, Department of Mineral Resources (DMR).
The LNG production test agreement is a collaboration between the DMR, PTT and PTTEP and is another step towards the Ministry of Energy’s goal of utilizing and developing Thailand’s energy resources to the fullest potential.
Natural gas produced by the Nongtom-A oil production platform operated by PTTEP will be processed into Liquefied Natural Gas (LNG) before it is processed into fuel for vehicles.
PTT will undertake the construction of the processing plant, gas pipeline. PTT plans to invest approximately 130 million Baht in the processing plant, which will begin an initial production run of 8 tonnes per day from December 1, 2006, which will rise to 15.5 tonnes per day, by February 2007. The NGV will be sold to the KNR group who is transforming their transport fleet to be ready to run on NGV fuel by December 2006.
During the period of the experiment, PTT will conduct a feasibility study to assess the commercial and technological viability of the process. At this moment, the gas produced as a by-product of crude oil production by the Nongtom-A platform is burnt off.
The Nongtom-A oil production platform is one of many situated in the S1 or Sirikit oil field, operated by PTTEP. The Sirikit field is the oldest and largest onshore oil field in Thailand covering 3 provinces (Sukkothai, Pitsanulok and Kampaeng Phet).
PTTEP for the length of the LNG production test agreement will be responsible for the development and operation of the Nongtom-A platform. At present, it produces crude oil and natural gas at a flow rate of 2.5 million square cubic foot per day (Mscf/d) with a long-term potential to produce natural gas at an average of 1-2 million square cubic foot per day (Mscf/d).
During the 2-year experiment, the DMR will also be responsible for ensuring that the experiment meets production and safety standards and conducting an extensive study on the ecological impact of the experiment.
For more information, please contact
Sidhichai Jayant/ Panlop Limsakul / Jakra Srinaganand
External Relations Department
Tel. +66 (02) 537 4000 End.