PTT of Thailand reveals regional LNG trading plan
Bangkok- PTT, the national oil and gas conglomerate, wants to become a regional trader of liquefied natural gas (LNG) with a plan to increase the utilisation rates of two LNG facilities in Rayong and to develop markets in neighbouring countries.
Yesterday PTT unveiled its LNG trading plan, aimed at providing small-scale distribution through marine vessels and heavy duty trucks, development of a gas pipeline and feeding LNG to a power generation system.
Wuttikorn Stithit, senior executive vice-president for gas business, said PTT is ready to provide services after testing this business model for a few years.
In addition, PTT joined the Energy Regulatory Commission’s (ERC) sandbox and submitted two projects, including the LNG trading plan, to the ERC’s programme to test the plans’ energy innovation before implementation.
The ERC has received 100 project submissions from companies, with 34 selected for the sandbox.
PTT has many gas-to-power projects both domestically and abroad. Subsidiaries PTT Exploration and Production and Global Power Synergy have teamed up to receive a licence to develop and operate a gas-fired power plant in Myanmar.
“We are ready in terms of gas infrastructure and transport via marine vessels and heavy duty trucks, as well as manpower for LNG trade,” said Mr Wuttikorn.
PTT has developed a gas pipeline from its petroleum block in the Gulf of Thailand, distributing gas to power plants of the state-run Electricity Generating Authority of Thailand since 1981.
PTT started to sell gas to industrial operators in 1986.
PTT entered the LNG business through PTT LNG by constructing a receiving terminal in Map Ta Phut in 2011. It started providing compressed natural gas (CNG) in 2015.
The LNG trading plan creates a foothold for PTT, creating a path to enter neighbouring countries.
The two receiving terminals in Rayong have a total capacity of 19 million tonnes per year. The first location is in Map Ta Phut, with 11.5 million tonnes a year, while the other is being constructed in Nong Fab with a capacity of 7.5 million tonnes.
The utilisation rate for the Map Ta Phut facility is 5 million tonnes.
Another PTT subsidiary, PTT NGD, which provides onshore pipeline gas distribution services, expects to grow in gas sales by 7% in 2019 to 32 million British thermal units from 30 million BTU in 2018.
Buyers include industrial operators in the glass, automotive and food and beverage sectors in 14 industrial estates, mainly in Bangkok suburbs and the eastern seaboard. Many shifted from bunker fuel and cooking gas to natural gas.