PTT, KOGAS to Cooperate in LNG Space

Thailand’s PTT Public Company Limited and KOGAS have signed an agreement to cooperate in the LNG value chain.

The two companies are top LNG buyers in Asia and would explore investment opportunity in LNG supply chain as well as look to secure LNG supply, PTT said in a statement Tuesday.

Thailand plans to cut natural gas production in Gulf of Thailand and rely on LNG imports to meet domestic demand.

A note published by country’s Department of Mineral Fuels (DMF) earlier this year stated that talks are on with PTT to reduce gas production capacity from Gulf of Thailand from 2,800 million cubic feet per day to 2,500 million cubic feet per day. The move is aimed at preserving the resources which are fast depleting.

DMF said that recent drop in global gas prices has made it very attractive to import LNG as spot prices are now very close to the price of gas produced in Gulf of Thailand.

Thailand’s second LNG terminal with a capacity of 5 mtpa is expected to come online next year. The Map Ta Phut LNG receiving terminal is already operational and also has a capacity of 5 mtpa. PTT has plans to increase this capacity to ten mtpa.