Bangkok Post

PTT eyeing additional licence

- YUTHANA PRAIWAN

National oil and gas conglomera­te PTT Plc is asking the Energy Regulatory Commission (ERC) to consider granting it a second liquefied natural gas (LNG) shipping licence in a move to drive the state plan to make Thailand a regional LNG trading hub.

The company, which recently submitted an applicatio­n to the ERC, plans to use the new licence through its subsidiary, PTT Global LNG Co (PTTGL), a joint venture with PTT Exploratio­n and Production Plc (PTTEP).

Wuttikorn Stithit, senior executive vice-president for gas business at PTT, said the second licence will enable PTT to trade more gas in addition to the gas sales agreements it made with buyers at a fixed volume.

Most buyers are large power plant operators, including state-run Electricit­y Generating Authority of Thailand (Egat), independen­t power producers and small power producers.

A Thai law prohibits gas exports, so PTT has been conducting a trial since 2019 based on plans to import LNG for re-export in a sandbox overseen by the ERC. The trial ends this year.

Mr Wuttikorn said PTT selected PTTEP as its shareholde­r in the subsidiary because PTTEP plans to have full integratio­n of midstream gas supply chains and it also wants to increase gas production over the long term.

PTT prepared for the regional LNG trade policy since 2017 by setting up PTTGL.

PTTGL’s registered capital is 8 million baht.

Egat was also granted an LNG shipping licence by ERC in 2019. It is ready to embark on LNG trade after its trading trial ended last year.

Ranee Kositvanic­h, deputy governor of Egat, said the organisati­on is waiting for a clearer policy from gas authoritie­s, who are conducting a feasibilit­y study on the second phase of LNG trade.

The second phase is meant to allow for free LNG trade in the region, following a first phase focused on gas supply for national energy security.

This year Egat plans to import 1.9 million tonnes of LNG, and 1.8 million tonnes next year.

In another developmen­t, PTT is discussing with gas producers in the Gulf of Thailand the possibilit­y of increasing their gas supply for the country to prevent gas shortages if PTT cannot start operations in the Erawan gas field.

PTT cannot access the area to install production facilities following a legal dispute between the Mineral Fuels

Department and US-based Chevron Corp on the decommissi­oning costs of transferab­le assets, as Chevron’s operation concession at Erawan is scheduled to expire in April of 2022.

 ??  ?? An aerial view of PTT’s LNG terminal in Map Ta Phut, Rayong province.
An aerial view of PTT’s LNG terminal in Map Ta Phut, Rayong province.

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