By an OGJ correspondent
BANGKOK, Aug. 26 -- Thailand has become another potential market for natural gas from Bay of Bengal Block A1 discoveries off Myanmar (OGJ Online, May 18, 2005).
Thailand's PTT PLC has begun preliminary discussions with the five-company consortium that holds a production sharing contract for the block, near the border of Myanmar and Bangladesh, about delivery of 1 bcfd of gas. South Korea's Daewoo International leads the consortium.
Discussions also include a proposal for PTT's exploration arm, PTT Exploration & Production PLC (PTTEP), to have a 15% stake in the acreage and field development venture, according to a senior PTT executive.
The gas would be transported to Thailand through a 1,000-km subsea transmission line, estimated to cost $2 billion.
PTT and the Block A1 Group expect to discuss the proposal in greater detail early next year, when further reserves appraisals and the conceptual plan of A1 field development are available.
Current data indicate the block holds 13.4-47.3 tcf of gas reserves and can sustain production of 2.1 bcfd for 2 decades.
The PTT executive said the earliest the gas could be delivered to Thailand is 2012, subject to early conclusion of the gas sales agreement and farm-in deal.
The A1 consortium has also been in talks with India about gas from the block through a 550-km pipeline and has considered of an LNG plant, depending on how much gas is found.
Daewoo obtained a production-sharing license for the block from Myanmar's Ministry of Energy in August 2000. Daewoo holds a 60% stake. India's Oil & Natural Gas Corp. has 20%, and Gas Authority of India Ltd. and Korea Gas Corp. each holds 10%.