Background

Presently, Nam Phong Power Plant is the largest power plant in the Northeast and the only power plant in the region which uses natural gas as fuel in electricity generation.

The exploration of petroleum in the Northeast began in 1979 by ESSO Exploration and Production Khorat Incorporation which was a concessionaire for petroleum drilling. From the geological survey, it was found that there were about 10 sources of petroleum in the area of 50,000 km² of Udon Thani and Khon Kaen Provinces.

In 1981, natural gas was found at the depth of 4,000 m in Nam Phong District, Khon Kaen Province with a reserve of 1.5 trillion ft³. The company negotiated the purchase with the government and prepared the development plan for 2 phases. The first phase was to test the gas well to estimate the exact amount of reserve and prepare for the long-term development of gas production. The second phase was commercial production.

In the first 3 years, the company could produce gas of approximately 30-60 million ft³ per day, averagely not less than 40 million ft³ a day, from Nam Phong gas wells 1 and 2 which had already been drilled and from the gas wells 4 – 5 which were drilled in mid-1989.

Meanwhile, the pressure of gas wells was inspected, including the production capability. The result was found to be satisfactory and the long-term commercial gas production started. The company confirmed to produce gas approximately 65 million ft³ per day for at least 15 consecutive years.

EGAT made a feasibility study of a power plant construction using natural gas from the mentioned source as fuel in electricity generation. Based on the feasibility study and several reviews, EGAT proposed to the government the construction of Nam Phong Combined Cycle Power Plant, Block 1.The proposal received approval on April 8, 1989. The construction began on May 16, 1989. The proposal for construction of Block 2 was approved on September 16, 1991, and the construction started on May 16, 1992.