BIG pins growth prospects on lower spot prices
Bangkok Industrial Gas (BIG), Thailand’s largest industrial gas maker, forecasts the liquefied natural gas (LNG) trade will grow significantly during 2020-21 thanks to lower prices across spot markets globally.
BIG entered the LNG business in the first quarter of 2019 as a sales agent by providing LNG truck deliveries for PTT’s buyers.
Piyabut Charuphen, BIG’s managing director, said LNG prices have declined since 2019 and the current prices are competitive when compared with prices of liquefied petroleum gas (LPG) and oil.
LNG prices in US spot markets were US$2-3 per million British thermal units (BTU) last week, although the US is very far from Thailand. The vessel transport cost is competitive between LNG and oil.
He said BIG plans to emphasise marketing promotions for LNG sales in 2020 to industrial buyers and they can shift their fuels in their operation processes between LPG and LNG.
BIG has five outsource delivery operators for LNG.
The company expects gas sale volumes in 2020 of 30 tonnes per day, tripling the volume to nearly 100 tonnes by 2022.
“Once we have gas sales above 200 tonnes per day, BIG will consider requesting a licence to be a LNG shipper, as this requires a massive investment,” said Mr Piyabut.
BIG forecasts industrial operators will buy roughly 3,000 tonnes of LPG
‘‘ Once we have gas sales above 200 tonnes per day, BIG will consider requesting a licence to be a LNG shipper.
PIYABUT CHARUPHEN
Managing director, BIG
per day. Once these operators convert to LNG, the sale volume will remain in line with LPG levels.
PTT, the sole LNG shipper, aims to improve the LNG system for Thailand to become a regional hub in the near future.
PTT also plans to increase utilisation rates of two LNG receiving terminal facilities in Rayong and develop gas markets in neighbouring countries.
PTT’s LNG receiving terminal capacity is 11.5 million tonnes per year in Map Ta Phut, with a second unit to take in another 7.5 million tonnes from 2022. PTT imported 5.0-5.2 million tonnes of LNG per year from 2018-19.