Petronas, Thailand's PTT secure approvals for new gas block sharing contract

The approval comes as Asian gas buyers seek greater supply certainty due to Middle East-driven disruptions

Published Mon, Sep 14, 2026 · 03:44 PM

The parties also signed a Gas Sales Agreement with their parent companies, Petronas and PTT, to support continued gas supplies from the block to both countries, Petronas added. PHOTO: REUTERS

[KUALA LUMPUR] Malaysian state energy firm Petronas said on Monday (Sep 14) its unit and subsidiaries of Thailand’s PTT had secured government approvals for a new production-sharing contract (PSC) covering a major gas-producing block in their joint development area.

The approval comes as Asian gas buyers seek greater supply certainty due to Middle East-driven disruptions to global energy markets.

PC JDA, a unit of Petronas’s exploration arm PETRONAS Carigali, PTT subsidiary PTTEP JDX and the Malaysia-Thailand Joint Authority signed agreements to establish a new contractual framework for Block A-18-01, according to a statement from Petronas.

The new PSC extends development of the existing Block A-18 beyond the current contract’s expiry on April 20, 2029 and incorporates an adjacent exploration area with additional resource potential.

Spanning approximately 7,250 sq km, the Malaysia-Thailand Joint Development Area (MTJDA) comprises several gas fields that have a combined natural gas production capacity of approximately 700 million standard cubic feet per day, with equal distribution to Malaysia and Thailand.

The parties also signed a Gas Sales Agreement with their parent companies, Petronas and PTT, to support continued gas supplies from the block to both countries, Petronas added.

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

“As a key source of natural gas and condensate for both countries, this milestone reinforces our shared commitment to maximise value through enhanced resource monetisation and operational synergies,” Ainoor Abizzurin B Abdullah, director of PC JDA, said.

Malaysia Economy Minister Akmal Nasir said in a statement that the progress achieved through Block A-18-01 provides a strong foundation for the continued development of the MTJDA.

“The momentum created today should pave the way for the next phase of developing new PSC and GSA for Block B-17-01, as we continue to unlock the full potential of MTJDA for the benefit of both nations,” he said.