Egat moves to begin LNG imports

State-run Electricity Generating Authority of Thailand (Egat) is seeking to directly import liquefied natural gas (LNG) for the first time as part of a government plan to boost competition in the power sector.

Thailand joins China and other Asian countries where LNG imports have risen exponentially over the past few years, driven by strong economic growth and a push for cleaner air.

“This seems to be a continuation of the current trend, where we see increasing amounts of end-user buyers coming to the market to procure LNG directly,” said Edmund Siau, an analyst at energy consultancy FGE.

Egat is requesting expressions of interest for up to 1.5 million metric tonnes per annum (mmtpa) of LNG via Thailand’s existing Map Ta Phut LNG receiving terminal in the eastern part of the country, according to a document issued by the company and reviewed by Reuters.

Egat, the country’s largest power producer, typically buys gas from state-owned PTT, which is Thailand’s sole gas supplier and only LNG importer.

Egat is seeking expressions of interest for the delivery of LNG through an agreement with PTT’s LNG terminal for four to eight years from March 2019, according to the document.

The LNG will feed its power plants, including South Bangkok, Bang Pakong and Wang Noi, as part of Thailand’s target to increase competition in the downstream gas sector.

PTT will be allowed to participate in Egat’s tendering process. Expressions of interest are due by Aug 31.

Egat also acquired access to 1.5 mmtpa of regasification from PTT LNG at the current terminal over a 38-year period from 2019 to 2056, the document said.