Thai coal miner Banpu makes first investment in US shale


BANGKOK: Banpu Pcl, Thailand’s largest coal miner, said it had spent US$112mil to buy a 29.4% stake in the Chaffee Corners Joint Exploration Agreement (JEA), a shale gas operation in the US state of Pennsylvania.

The Thai company said in a statement yesterday that the deal was its first in the US upstream gas business and was part of its strategy to balance its heavy exposure to the Asian market.

JEA is 65.4%-owned and operated by Talisman Energy Inc and located in the northeast section of the Marcellus Shale belt, the largest source of natural gas in the United States, it said.

Banpu’s investment represents proved reserves of 156 billion cu ft of dry natural gas and target net output of around 21 million cu ft per day for 2016, the company said.

The gas is sold entirely to the US domestic market, mainly for power generation.

Many energy firms have been forced to write down the value of their US shale gas operations due to the slump in oil and gas prices.

Banpu said it had appointed Anon Sirisaengtaksin, the former chief executive of PTT Exploration and Production Pcl, Thailand’s largest oil and gas explorer, as a director and to advise on its upstream gas strategy.

Banpu has coal mines in Indonesia, Australia, and China and has interests in power plants in Laos, China and Japan. – Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , banpu plc , Thailand , shale

   

Did you find this article insightful?

Yes
No

Next In Business News

Malaysia Airlines offers subsidised tickets to boost domestic tourism
O&M business drives Serba Dinamik profits higher in Q3�
Top Glove confirms temporary stoppage of production plants in Klang due to Covid-19�
Soybeans touch 4-1/2 year high of $12 on supply concerns, high demand
Ringgit closes higher vs US$ at 4.0880
CPO futures close higher at RM3,518
Boustead Plantations stages turnaround in 3Q with RM17.9m net profit
US dollar falls to 2018 lows as vaccine optimism damps haven demand
HLT Global posts lower Q3 profit, as operating cost jumps�
PRG returns to black in 3Q with RM19mil net profit

Stories You'll Enjoy