Page 7 - AsianOil Week 05 2023
P. 7
AsianOil PIPELINES & TRANSPORT AsianOil
Brunei LNG reaches deal with Japan
Petroleum Exploration
BRUNEI BRUNEI LNG has announced it will begin The government of Brunei holds a 50% inter-
supplying liquefied natural gas (LNG) to Japan est in Brunei LNG. Mitsubishi and Shell each
The amount that will be Petroleum Exploration Co. beginning in April. have 25% stakes in the company.
supplied has not been The amount supplied and length of the contract
revealed. have not yet been revealed.
Japan is Brunei LNG’s largest market. Bru-
nei provides 6% of Japan’s LNG, making it the
country's sixth-largest supplier. The company
has reached deals already with Japanese utility
companies Tokyo Gas, Osaka Gas and JERA.
“We are looking to see whether there are
mutually beneficial opportunities in the future
that we can explore,” managing director and
CEO Farida Talib of Brunei LNG told Nikkei.
Brunei LNG currently sources feedstock gas
from two gas fields but has indicated that Mit-
subishi Corp. and Malaysia's state-owned oil
company Petronas are in midst of developing a
new gas field in the country.
This comes as fears have arisen that the com-
pany’s natural gas could be at risk of production
cuts as a result of rising extraction costs.
INVESTMENT
PTTEP delays $3bn gas-to-
power project in Myanmar
THAILAND THAILAND’S state-owned PTTEP has opted to including France’s TotalEnergies, which with-
delay the development of a $2bn integrated gas- drew from the Yadana field in January last year.
A number of to-power project in Myanmar, amid heightened Rawanchaikul also announced that PTTEP
international energy scrutiny over international oil and gas invest- would sell the Cash and Maple gas and con-
companies have ments in the military junta-led country. densate field in Australia, leaving the company
delayed or cancelled The development would have involved the with only a minor petroleum business in the
investments in light development of the Aung Sinkha (M3) gas country. The asset is expected to be divested
of the takeover of field and the construction of a 600-MW com- this year.
Myanmar’s military bined-cycle power plant in Kyaiklat and a 370- Cash and Maple, situated 680 km west of
junta. km offshore and onshore pipeline from Kanbauk Darwin in the Timor Sea, holds an estimated 3.5
to Daw Nyein and Kyaiklat, along with a trans- trillion cubic feet (100bn cubic metres) of gas.
mission line. Exploration results from wells drilled in 2011
PTTEP will continue existing gas production and 2011 were encouraging.
in Myanmar, despite Western-imposed sanc- “But the area is too far and production costs
tions on the country. would be high, driven by the construction of a
“We produce up to half of the gas used in gas pipeline,” the CEO said. “If we shift to LNG
electricity generation in Myanmar and almost production, the business will not be viable
20% of that in Thailand, so locals will not suf- because facility costs are too high.”
fer,” PTTEP CEO Montri Rawanchaikul said last The sale of Cash and Maple is part of a larger
week. push by PTTEP to redirect its investments to the
A number of international oil companies Middle East and Southeast Asia. In 201 it sold
(IOCs) have been forced to leave Myanmar since the Montara oil and gas field in Australia to Jade-
the military junta took power in February 2021, stone Energy.
Week 05 04•February•2023 www. NEWSBASE .com P7
