Energy Ministry Awards Isan Gas Concessions, Seeks 2 Billion Baht Investment
The Energy Ministry awarded onshore gas exploration blocks in Udon Thani to PTTEP, targeting 2 billion baht investment to bolster Northeast energy security.
Energy Minister Ekkanat Promphan revealed that amid the prolonged global energy crisis and volatile imported fuel prices, the government is accelerating the share of domestically produced energy. This includes biodiesel B20 and gasohol E20, which combined for over 9 million liters per day as of late October, driving palm oil demand and pushing fresh fruit bunch prices to 8.50 baht per kilogram. The ministry is also promoting rooftop solar for households.
The latest move adds onshore natural gas sources in the Northeast to reinforce national energy security. The Ministry of Energy has awarded petroleum exploration and production rights for onshore blocks L1/66 and L3/66 to PTTEP International Limited. The minister also visited Production Base D at the Sinphuhorm gas field on the Phu Phan range in Udon Thani, a vital gas source for the region.
Ekkanat stated that every cubic foot of domestically produced gas reduces the need to import and compete for energy on the global market. The government is therefore fast-tracking exploration areas with potential — onshore, offshore, and rooftop solar — to expand options and reduce exposure to global energy volatility.
Blocks L1/66 and L3/66 sit adjacent to the Sinphuhorm field. If exploration finds commercially viable gas, it can connect to existing infrastructure, reducing lead time and investment cost. The first phase involves seismic surveys and exploration drilling, expected to take about three years.
Production Base D at Sinphuhorm began output on August 12, 2026. Gas flows via pipeline to the central processing plant in Khon Kaen before fueling the Nam Phong power plant.
The development benefits the country in three areas: energy security — adding domestic gas to feed Nam Phong and support long-term Northeast electricity demand for at least 25 years; state revenue — if both blocks and Sinphuhorm reach commercial development, combined royalties and petroleum income tax could exceed 60 billion baht. Signature bonuses of 3 million US dollars (about 100 million baht, roughly 50 million per block) have already been paid to the Treasury; and the economy — exploration investment of around 2 billion baht is expected, creating jobs and distributing income to local communities and businesses.
This accelerated exploration is another avenue to increase domestic natural gas by leveraging existing infrastructure. If commercial reserves are confirmed, it will bolster long-term fuel and power system security for the Northeast.
