Thai-Myanmar gas project to start commercial production in 2013

BANGKOK, Aug 3 (TNA) – Thailand and Myanmar will start commercial gas production from offshore Block M9 natural gas project on the Gulf of Martaban, south of Yangon in late 2013.

Wannarat Channukul, Thailand’s energy minister said after the ASEAN Energy Ministers meeting last month in Mandalay and bilateral talks between Thailand and Myanmar, the two countries would sign an agreement on selling gas in the fourth quarter of this year.

The operation by a subsidiary of the PTT Exploration and Production Plc. (PTTEP) will produce gas at a volume of about 300 million cubic feet per day (mcfpd) from the M9 gas field.

Of the total daily production, 240 mcf, or 80 per cent, will be delivered for use in Thailand and the remaining 60 mcf, 20 per cent, will be used in Myanmar.

Petroleum reserves are estimated at about 1.5 trillion mcfpd and investment funds of at least one billion US dollars are expected.

The negotiation was earlier delayed due to the economic crisis and the decreasing demand for electricity and gas, said the energy minister. (TNA)