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Zawtika gas exports to Thailand start flowing

By Aung Shin   |   Monday, 8 August 2014 Myanmar Times

Natural gas is now being exported from the Zawtika offshore site to Thailand, company officials said on August 5.

Thai state-owned firm PTT Exploration and Production announced on the Thai stock exchange that the site is one of its largest developments.

“This project is the largest overseas offshore producing gas field operated by PTTEP. The success of Zawtika marks as another important milestone for PTTEP to ensure energy security for both Thailand and Myanmar,” said Tevin Vongvanich, President and Chief Executive Officer of PTTEP.

PTTEP owns 80 percent of the site in block M9 with the remainder held by Myanma Oil and Gas Enterprise (MOGE).

The firm is now ramping up production for export to a rate of 240 million standard cubic feet per day to meet its daily contract quantity, said Mr Tevin in a release to the Thai stock exchange.

The firm discovered natural gas at Zawtika in 2007, and commercial production began this year. It has been delivering about 60 million standard cubic feet per day to Myanmar since March.

MOGE officials said it will be a few more days until the site reaches full production.

“The test run from pumping natural gas started on August 5,” MOGE director U Than Tun told The Myanmar Times. “It will take another week to get to full capacity.”

Prices for Zawtika natural gas is the same as other offshore platforms at US$11.45 per million British Thermal Units, and will ultimately generate daily income of about $2.3 million, said U Than Tun. He added the project could ultimately produce 340 million standard cubic feet per day, with 240 going to Thailand and the rest to Myanmar.

Zawtika is the fourth commercial gas field in Myanmar, and is thought to have total reserves of 1.4 trillion cubic feet. PTTEP is also the operator of the Yetagun gas field.

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