Amerada Hess Makes Discovery Onshore Thailand

Amerada Hess has made a huge natural gas discovery at its Phu Horm prospect in Udon Thani, onshore Thailand, according the Thailand Energy Ministry. Amerada Hess has drilled two well and has commenced operations on a third.

Commercial amounts of natural gas were discovered in the first well, however, the second well was dry. The third well has encountered natural gas, and more exploration will be needed to confirm the exact amount of reserves.

If the find proves to be large enough, talks could be started with the Electricity Generating Authority of Thailand about laying a pipeline to transport the gas from Phu Horm to Nam Phong power plant in Khon Kaen. Due to falling supply of gas at Nam Phong, being produced by ExxonMobil, electricity production there has been cut to 240 megawatts from 660 MW. The plant supplies electricity for the Northeastern region. The gas supply has dropped to 50 million cubic feet per day from 100 mcfpd. If it falls another 10 mcfpd, the volume would be too low to produce the amount of electricity demanded by the region.