webfact Posted July 18, 2014 Share Posted July 18, 2014 PTT to hoard LNG after global prices plummetBANGKOK, 18 July 2014 (NNT) - The PTT Public Company Limited has its eye on purchasing liquefied natural gas (LNG), since the global price is now lower than in Myanmar.Pailin Chuchottaworn, Chief Executive Officer and President of PTT, revealed that the LNG price on the global market had dropped from USD 19-20 per million BTU in January to USD 10 per million BTU.The price is now close to the cost of LNG purchased from Myanmar at around USD 11-12 per million BTU.So, it is a great opportunity to buy and hoard LNG. PTT is considering whether its 5-million-tonne warehouse has enough space for LNG storage and how much it should purchase since global prices always change.-- NNT 2014-07-18 Link to comment Share on other sites More sharing options...
Popular Post GuestHouse Posted July 18, 2014 Popular Post Share Posted July 18, 2014 (edited) Are they nuts?! Putting aside the technical, cost and blast radius issues of storing such a large quantity of LNG there remains the past experience of automotive fuel storage at behind 'fenced off and well guarded areas' in Sathahip - Hundreds of millions of Bhat's worth of diesel fuel seemingly evaporated right under the noses of the well armed guards looking after it. A large store of any commodity in Thailand is almost bound to go missing... we've been reminded of this how many times? Edited July 18, 2014 by GuestHouse 4 Link to comment Share on other sites More sharing options...
Popular Post JesseFrank Posted July 18, 2014 Popular Post Share Posted July 18, 2014 PTT is considering whether its 5-million-tonne warehouse has enough space for LNG storage I hope the warehouse is airtight and they don't leave a window open . 3 Link to comment Share on other sites More sharing options...
Chang_paarp Posted July 18, 2014 Share Posted July 18, 2014 So what happens if the international price drops further, or Myanmar decides to drop their price in response? Link to comment Share on other sites More sharing options...
Popular Post Payboy Posted July 18, 2014 Popular Post Share Posted July 18, 2014 I've tried to hold in gas many times. Doesn't work. 4 Link to comment Share on other sites More sharing options...
Lusty Loser Posted July 18, 2014 Share Posted July 18, 2014 china has recently brought online big hydrodams which will sap all energy prices longer term, . Link to comment Share on other sites More sharing options...
Soutpeel Posted July 18, 2014 Share Posted July 18, 2014 So what happens if the international price drops further, or Myanmar decides to drop their price in response? One hopes they are not trying to corner the market in LNG... didnt Thailand try something like this before with rice and dont think that worked out too well.. Regional hub of LNG perhaps ? Link to comment Share on other sites More sharing options...
ChrisY1 Posted July 18, 2014 Share Posted July 18, 2014 If they're going to buy LNG in the liquid form.....then they must have some serious -70c storage facility somewhere....otherwise it's just going to be gas..... Thye're nuts for sure......not the commodity to save up for better prices..... Link to comment Share on other sites More sharing options...
Paulzed Posted July 18, 2014 Share Posted July 18, 2014 (edited) If you stock pile a global commodity doesn't that contribute to the global price dropping further e.g if there is too much of it then the price will drop due to low demand. Also LNG can't just be stored like rice in a silo, it has to be stored at minus 165 degrees Celsius and requires a complex facility to maintain the gas through compression and heat exchangers. I think someone dreamt up this report. Edited July 18, 2014 by Paulzed Link to comment Share on other sites More sharing options...
GuestHouse Posted July 18, 2014 Share Posted July 18, 2014 Think how wrong trying to stock pile rice against the markets went. Link to comment Share on other sites More sharing options...
Ricardo Posted July 18, 2014 Share Posted July 18, 2014 How can you stockpile LNG in a warehouse ? Link to comment Share on other sites More sharing options...
JoeThePoster Posted July 18, 2014 Share Posted July 18, 2014 I've tried to hold in gas many times. Doesn't work. I tried that too. All my plans backfired. 2 Link to comment Share on other sites More sharing options...
Soutpeel Posted July 18, 2014 Share Posted July 18, 2014 How can you stockpile LNG in a warehouse ? Well as a starting point, they would have to get rid of all the rotten rice first... 2 Link to comment Share on other sites More sharing options...
Naroge Posted July 18, 2014 Share Posted July 18, 2014 PTT already have a 5 million ton storage facility in Rayong, and is in the process of building another 5 million ton facility. I would also assume that PTT have most of its supply lined up in long term contracts, with a balance to be bought in the spot market. There should not be so much to "consider" for PTT. If the price is right, just fill it up to the top right now. Link to comment Share on other sites More sharing options...
chotthee Posted July 18, 2014 Share Posted July 18, 2014 "The price is now close to the cost of LNG purchased from Myanmar at around USD 11-12 per million BTU." Can someone please tell Khun Pailin that Myanmar has no LNG production nor any LNG terminal at all. I wonder how PTT managed to buy LNG from Myanmar at all? Link to comment Share on other sites More sharing options...
ratcatcher Posted July 18, 2014 Share Posted July 18, 2014 I've tried to hold in gas many times. Doesn't work. Yes, but just think of the satisfaction you got when you released it "onto the market". Link to comment Share on other sites More sharing options...
BSJ Posted July 19, 2014 Share Posted July 19, 2014 555! Stupidity knows no bounds! Can someone send this to PTT....."Natural Gas Futures Contract " and you can buy more than one! Link to comment Share on other sites More sharing options...
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