UAC Global, a chemical trader and clean power operator, expects to start operation of its onshore oil and gas field within this month to supply gas to fuel its power plants as well as earn additional revenue.
The field, consisting of blocks L10/43 and L11/43, is located in Sukhothai province.
Chatchaphol Prasopchoke, president and chief executive of UAC, said the company will produce oil and gas, with combined volume of 300 barrels of oil equivalent per day.
The oil and gas production is expected to generate 250 million baht this year.
Mr Chatchaphol said the company entered the petroleum exploration and production business because it also wants to help Thailand ensure energy security.
This intention led UAC to ask the authorities for permission to succeed Siam Moeco in running its oil and gas production facility after that firm decided to cease production and leave the business.
The cabinet resolved to grant the permission to UAC in February this year.
The exploration and production concession for blocks L10/43 and L11/43 will last until 2033.
According to UAC, the preparations for oil and gas production within the area was already 60% complete.
Gas from the blocks will be sent to a gas separation plant, which will then supply gas as fuel to two UAC-owned gas-fired power plants located in the same province.
UAC allocated 50 million baht to invest in oil and gas production, with the aim of having more gas feed stocks and enhancing its power plant capacity, according to Tris Rating.
The company plans to feed crude oil to local oil refineries.
Earlier this year, UAC said it would postpone the commercial operation of its biogas-fired power plant in Khon Kaen until the second half of this year because of lengthy bureaucratic procedures.
The plant is the first project under the state Energy for All renewable scheme to be connected with the state grid.
Introduced in November 2019, Energy for All is designed to have businesses and communities jointly invest in biomass and biogas-fired power plants.
