PTT to hike LNG imports next year to meet needs of industrial sector

[rooster59]

PTT to hike LNG imports next year to meet needs of industrial sector

By THE NATION

 

 

PTT Plc will import 5.2 million tonnes of liquefied natural gas (LNG) next year, up from 5 million tonnes this year, the company's senior executive vice president of its Gas Business Unit, Wuttikorn Stithit, said.

 

 

This is in line with the long-term contracts PTT has signed with four suppliers. 

 

The company estimated that the total demand of LNG next year would be almost the same level as this year or a little bit higher.

 

The LNG demand from power plants is expected to remain the same this year at 4,800-5,000 million cubic feet per day, accounting for 60 per cent of the country's total demand.

 

The demand by the industrial sector, which accounts for 20 per cent of total demand, is expected to increase from this year.

He expected the demand for industrial use will expand as PTT's gas business has continued to expand its gas distribution network to tap more number of industrial customers.

 

PTT has also increased the number of partners to distribute its LNG on a retail basis. Therefore, he expected growth in LNG demand for industrial use next year.

 

PTT is expected to begin trial of LNG-related services in the first quarter next year as part of the government's policy of turning Thailand into the regional LNG trading hub.

 

The activities include LNG reloading and LNG bunkering services.

 

Source: https://www.nationthailand.com/business/30379146

 

-- © Copyright The Nation Thailand 2019-12-08

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[RBOP]

If EGATs FSRU project goes through they will be import their own LNG (not buy from PTT). 

[Srikcir]

16 hours ago, RBOP said:

If EGATs FSRU project goes through they will be import their own LNG (not buy from PTT). 

Both are government controlled, so I wouldn't expect any any operational conflicts between the two.

[Srikcir]

23 hours ago, rooster59 said:

The company estimated that the total demand of LNG next year would be almost the same level as this year or a little bit higher.

The Prayut government wants Thailand to be the energy Hub of ASEAN wherein it would sell its excess LNG (that Thailand is contractually required to purchase) to ASEAN members as Thailand has the infrastructure necessary for such transference not available in the other ASEAN members (debatable with Vietnam, Malaysia, Indonesia).

But when domestic consumption equals or falls short of LNG energy needs (as projected for this year and next year), there will be no LNG to export, no revenues from export. In the long term Thailand will face energy competition from some of the other ASEAN members as there's nothing unique about importing LNG on their own from outside sources.