Thailand’s PTTEP and Malaysia’s Petronas have reportedly signed 35-year production-sharing contracts (PSC) and gas sales agreements (GSA) for Block A-18-01 in the Malaysia-Thailand Joint Development Area (MTJA).
PTTEP’s subsidiary (PTTEP JDX Thailand) and Petronas Carigali’s subsidiary (PC JDA) each reportedly hold a 50% interest, with the contract term running 35 years from January 1, 2026. The block reportedly covers an area of about 3,494 square kilometers.
Gas production capacity is reportedly around 300-400 million standard cubic feet per day (scf/d), to be supplied equally to Thailand and Malaysia. Thailand’s share reportedly accounts for about 4% of the country’s natural gas demand, used mainly for power generation in the south, it is reported.
The agreement is viewed as strengthening energy security cooperation between the two countries, and is notable as a gas field development contract itself rather than an offshore platform or FPSO project.
As regional gas supply stability in Southeast Asia is strengthened, this is viewed as a case that could lead to further downstream power and gas infrastructure investment.
The timing of actual gas production start and any adjustment to the gas allocation ratio between the two countries are worth watching.