Sontirat blames low domestic LNG output for rising power prices

In a Facebook post on Friday, Sontirat said since liquified natural gas (LNG) is the main fuel for producing electricity in Thailand, a drop in supply has resulted in the need to import LNG, which has become far more expensive due to the ongoing Russia-Ukraine war.

“The cost of producing electricity is higher, so people like us have to pay more for power,” he wrote.

The supply of LNG has dropped due to the recent transition of producers at the Erawan gas field in the Gulf of Thailand. He said this shift was about two years behind schedule.

The agreement calls for the new producer to supply 800 million cubic feet of LNG daily, but the current output is reportedly approximately 300 million, the post read.

“This means about 400 million cubic feet of LNG is missing per day or about 3 million tonnes per year, which we have to import. At the current prices, we have to pay a lot,” he said.

Sontirat, who is also co-founder of the new Sarng Anakot Thai Party, said the authorities should seriously tackle this issue as this drop in output could have been prevented.

“When I was in charge, negotiations with involved parties were close to being wrapped up and the concession handover was smooth. It’s a pity that things did not go as planned after I left,” said the former energy minister.

Sontirat, along with then-finance minister Uttama Savanayana and higher education, science and innovations minister Suvit Maesincee, walked out of the ruling Palang Pracharath Party in July last year. It is believed they left because Deputy Prime Minister Prawit Wongsuwan replaced Uttama as party leader, and Anucha Nakasai was given Sontirat’s secretary-general post.

The Erawan field is Thailand’s single largest gas producer, accounting for over 36 per cent of the domestic gas production in 2020 and covering some 25 per cent of total gas demand, official data showed.

The gas field was previously operated by Chevron, but the production sharing contract was later awarded to state-owned PTT Exploration and Production (PTTEP).