On 6 November, a meeting of the first Joint coordinating committee (JCC) of Gazprom and PTT Public Company Limited (Thailand's national oil and gas company), took place in Saint Petersburg. The meeting was chaired by Vitaly Markelov, Member of Gazprom’s Board of Directors and Deputy Chairman of the Management Committee, and Wirat Uanarumit, Chief Operating Officer of PTT.
The meeting was also attended by representatives of Gazprom Export LLC, Gazprom Marketing & Trading Ltd., PJSC Gazprom Neft, as well as a joint delegation of specialists from Thai companies in the PTT Group. Gazprom International, Gazprom’s sole operator of upstream projects outside of Russia, was represented by Andrey Fick, Managing Director and CEO, and Vladimir Ilyanin, Deputy Managing Director for Business Development.
During the meeting, the participants reviewed key opportunities for cooperation in exploration, crude processing and fuel distribution, construction and servicing of energy infrastructure facilities, and development of NGV projects. The companies are planning to explore possibilities of joint operations in Russia, Thailand, and third countries.
The parties resolved to establish five Russian-Thai joint working groups to discuss these prospects in greater detail.
According to Wirat Uanarumit, Thailand is interested in developing joint oil and gas projects with Gazprom. Against the backdrop of the growing demand for energy resources, local production of hydrocarbons in the country has been falling in recent times, while the reserves have been reducing. The volume of imported liquid hydrocarbons has reached 80%, while natural gas imports exceed 25%. Nearly 3 million tonnes of LNG are imported annually. A large percentage of energy resources is supplied to Thailand by neighboring Myanmar.
The next meeting of the JCC is scheduled to take place in Russia in the summer of 2017.
The total proven oil reserves in Thailand are currently estimated at 405 million barrels (over 55 million tonnes), whereas the volume of gas reserves is 7,8 trillion cubic feet (over 220 billion cubic meters).
According to the government of Thailand, 1,5 trillion cubic feet of gas (42,4 billion cubic meters) and 25 million tonnes of oil and other liquid hydrocarbons were produced in the country in 2015. Over 90% of Thailand’s natural gas is produced at offshore fields, the largest of which is the Bongkot field.
According to the International Energy Agency, oil and oil products make up 40% of the country’s energy balance, whereas natural gas accounts for 28%.
In Thailand, there are currently three trunk gas pipelines with a total length of 3,498 kilometers. Two of them are used to transport gas produced at the offshore fields of the Gulf of Thailand, and the third one transports natural gas from Myanmar to Thailand.
PTT, Thailand's state oil and gas company, was established in 1978. Key activities: prospecting and exploration works and production of oil and natural gas, storage, transportation, distribution and sales of oil and gas, oil imports, petroleum processing, petrochemistry, generation and supply of electricity.
The government holds the controlling interest of PTT (66%). Since 2001, the company's shares have been traded at stock exchanges. PTT is one of the world's 20 largest oil and gas corporations.
PTT participates in 38 energy projects in North and South America, Middle East, Africa and Southeast Asia.
In May 2016, Gazprom and the Thai company signed a Memorandum of Understanding. The document envisages boosting cooperation on hydrocarbon field development, carrying out joint LNG projects, distributing LNG and LPG and sharing experience in the oil and gas industry.
In South and Southeast Asia, Gazprom International is implementing a range of projects in Vietnam and Bangladesh.