PTT Asked to Speed Up Gas Imports from Malaysia

Thai government has urged the national energy firm PTT to expedite its natural gas deal with Malaysia, National News Bureau of Thailand (NNT) reported Friday.

The state owned energy company is expected to import 300 million cubic feet of natural per day from the neighboring country.

Director-General of the Department of Mineral Fuels Phuangthip said the gas will be bought from B17 block in the Thailand-Malaysia Joint Development Area (JDA), NNT reported.

The natural gas purchase of 300 million cubic feet/day is expected to commence from 1 April 2015. Malaysia has already constructed gas pipelines to transport natural gas from the area. 

Thailand is looking to import more gas to replace potential declines in pipeline imports from Myanmar. Gas is used for almost 70 percent of Thailand's power generation. About one quarter of those supplies are piped in from Myanmar, although those contracts are winding down and Thailand's neighbour is expected to use more of its natural gas resources for its own development, Reuters said in a report last month.

Also last month, Qatargas delivered first LNG cargo of approximately 90,000 tons to Thailand’s PTT Plc under the long term deal signed between the two parties.

In 2012, PTT and Qatargas 3 inked a Sale and Purchase Agreement (SPA) under which the latter was to deliver two million tonnes per annum (MTA) of LNG for a period of 20 years beginning from 2015.  The agreement was PTT’s first long-term LNG SPA.