Sustainable Development with First CDM Project In Thailand E&P

Abstract

Abstract PTTEP Siam Limited (PTTEPS), a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP), has pioneered a Clean Development Mechanism (CDM) project that takes aim at recovering and then using associated gas from the oil wells of Thailand’s Sao Thian-A field. Situated in the S1 Concession area in Sukhothai Province, the Sao Thian-A field has produced approximately 1.5 MMscfd of associated gas and 1,900 BPD of crude oil. Without a CDM project, this associated gas, comprised primarily of methane with lesser amounts of other energy rich hydrocarbons, would have simply been continued to have been flared and more greenhouse gases would have been released into the atmosphere. At its core, the CDM project involved the installation of a gas treatment system to filter out hydrocarbon droplets from the associated gas prior to its internal use and sale to external facility. The CDM Project has indeed helped the whole facility become more economically viable for further investment in similar such additional CDM units. The CDM project was approved by the Designated National Authority of Thailand in December 2010. Key benefits of applying CDM to the overall Project included reduction of GHG emissions, which in turn, increased the global energy efficiency of the oil field; the reduction of non-renewable energy use; and the encouragement of best practice of associated oil management among oil and gas operators in Thailand. In addition to revenue gain from carbon emission reduction trading, this Project has fulfilled score-based criteria for national sustainable development evaluation: natural resources and environment, social, technology transfer and development, and economic growth. This CDM application within a petroleum exploration and production project is Thailand’s first! If this Project receives final approval and is officially registered by the CDM Executive Board, it will no doubt encourage other operators in Thailand to initiate their own participation in this business.