Govt wants PTT to import LNG if it works out cheaper than domestic production

[webfact]

Govt wants PTT to import LNG if it works out cheaper than domestic production

By THE NATION

 

Sontirat

 

Energy Minister Sontirat Sontijirawong said today (January 28) that he ordered PTT to study the possibility of reducing its production of national gas extracted from the Gulf of Thailand and import more liquefied natural gas (LNG) from neighbouring countries to use in electricity generating.

 

“This measure is in response to the current trend of the global LNG price, which has come down a lot since last year,” he said. “It will also help preserve our natural gas sources for future use or in case of emergency.”

 

Sontirat said PTT is currently surveying the price difference between importing LNG versus using domestically produced natural gas.

 

“If the cost of buying and transporting imported LNG turns out to be significantly cheaper, then we will proceed with the project,” he added.

 

“If successful, this project will be an important step in driving Thailand to become a regional trading hub for LNG, which is one of the government policies scheduled to kick off by the third quarter of 2020,” he said.

 

As for the construction of community power plants to help the grass-roots economy, another project under the Energy Ministry’s responsibility, the minister said the investment framework of the project should be concluded by the end of January.

 

“The bidding for 700-megawatt power plants should be ready to start in February for both quick win and general projects,” Sontirat said. “We confirm there will be no lobbying from any party to get the contract. Any bidder who violates the terms will be immediately disqualified,” he vowed.

 

The energy minister also said his ministry is studying the Federation of Thai Industries’ proposal to reduce the electricity fee for SMEs and low-income earners to boost the domestic economy, as well as considering adjusting the criteria for holders of state welfare cards to receive energy-related privileges.

 

“However, these measures are most likely dependent on the disbursement of the 2020 fiscal budget, which is now still on hold,” he added.

 

Source: https://www.nationthailand.com/news/30381171

 

-- © Copyright The Nation Thailand 2020-01-28

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[RichardColeman]

Don't know what he is illustrating, but nothing personal I hope !

[xtrnuno41]

in the time they studied if its cheaper, price has gone up a lot and they can start all over

[tomauasia]

It's not the government business to stand over businesses.

[IAMHERE]

1 hour ago, RichardColeman said:

Don't know what he is illustrating, but nothing personal I hope !

How welcome Farang are ?  Hope Thai workers in the domestic industry are taken care of, no lost jobs.

[CGW]

Thailand has been producing a lot of gas for a lot of years which has given it a relatively cheap source of power, drilling and production has cut back considerably in recent years, the fields are old, production is way down.

They have no choice but to import!

[Srikcir]

23 hours ago, webfact said:

Energy Minister Sontirat Sontijirawong said today (January 28) that he ordered PTT to study the possibility of reducing its production of national gas extracted from the Gulf of Thailand and import more liquefied natural gas (LNG) from neighbouring countries to use in electricity generating.

???

No study is necessary!

Last year PTT was authorized to import LNG.

To that end it had contracted with Malaysia last year to import minimum quantities for "the long term." But no sooner after Malaysia was awarded , PTT "called off" the purchase in order to buy LNG on demand from Malaysia at spot market prices due to appreciation of the baht.

https://www.bangkokpost.com/business/1739775/egat-jettisons-gas-purchase-deal-with-petronas