Supply & Demand

Thailand looks to LNG as production cut looms

Gas reserves in the Gulf of Thailand are starting to run out, but low-cost spot LNG could offer a way to offset the production decline Gas reserves in the Gulf of Thailand are starting to run out, but low-cost spot LNG could offer a way to offset the production decline.
By Damon Evans 11 March 2016 0 19546
Thailand’s Map Ta Phut LNG terminal will run at full capacity in 2016 to offset the planned production cut. (Qatargas)

Thailand has announced plans to cut domestic gas production and import more low-cost spot LNG in an effort to conserve its waning reserves.

The government aims to reduce output from the Gulf of Thailand by 10%, from around 79 million cubic metres per day (MMcm/d) at present to 71 MMcm/d by next year, Director General of the Mineral Fuels Department Veerasak Pungrassamee said in a note earlier this month.

This will help extend flows from fields in the gulf until 2025. These fields operate at...