Thailand Oil & Gas Upstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Thailand Oil & Gas Upstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Thailand is an oil and natural gas producer. However, the country increasingly relies on hydrocarbon imports to sustain its rising fuel demand. The primary energy consumption in Thailand grew at a CAGR of 2.53% during the period 2011-18 and is expected to maintain a similar growth rate over the forecast period. With various upstream projects expected to come online during the forecast period, the oil and gas upstream market is slated to increase over the forecast period. However, crude oil reserves are declining in Thailand, and the country has to depend on the imports to meet the increasing primary consumptions. The political crisis, massive flooding, and indecision about revisions to the Petroleum Act have stalled government projects which are expected to restrain the growth of the market.

Key Highlights

• The offshore sector is expected to dominate the Thailand oil & gas upstream market owing to new discoveries and investments.
• The LNG demand is expected to increase over the forecast period considering the global carbon emission reduction goals, which is expected to increase the demand of natural gas for power generation. Furthermore, the government is considering investment in various LNG project which can render opportunity for the growth of the market over the forecast period.

Key Market TrendsOffshore Sector to Dominate the Market

• The offshore segment accounted for ~90% of the Thailand oil & gas production in 2019. With substantial investment and discoveries, various offshore project is expected to come up during the forecast maintaining the dominance of offshore segment.
• Thailand's upstream oil and gas production is predominately sourced from two offshore areas in the Gulf of Thailand, namely the Pattani Basin and the Malay Basin. Due to the fractured nature of the offshore geology, Thailand's reserves and production is provided by many separate, but relatively homogenous, reservoirs spread across the two basins.
• In 2018, a petroleum bidding round for offshore block G1/61 and G2/61 was announced. The bidding results were announced in December 2018, with PTTEP winning the Bongkot PSC, and PTTEP and Mubadala Petroleum winning the Erawan PSC.

Increasing Investment in the Oil & Gas Sector is Expected to Drive the Market

• PTT Exploration and Production (PTTEP) the national petroleum exploration and production company based in Thailand has a five-year investment plan (2019-2023) worth a combined USD 16.105 billion to support its business expansion both domestically and overseas.
• Following its five-year plan, PTTEP planned to invest USD 3.256 billion in 2019, USD 2.946 billion in 2020, USD 3.479 billion in 2021, USD 3.56 billion for 2022 and USD 2.864 in 2023.
• Furthermore, the government is revising its policies to attract foreign investments. The government in 2018 awarded a production sharing contract for the first time. The PSC contract is expected to boost investor confidence and attract more investment over the forecast period.
• Therefore, factors such as increasing investment and policy revamp is likely to drive the market.

Competitive Landscape

The Thailand oil & gas upstream market is moderately consolidated. The key players in this market are Chevron Corporation, PTT Public Company Limited, Exxon Mobil Corporation, PT Pertamina, Schlumberger Limited, and others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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