Energy Ministry keen to promote LNG hub, trading centre

Energy Ministry keen to promote LNG hub, trading centre

The Energy Ministry has high hopes for Thailand to become a regional trading hub for liquefied natural gas (LNG) in early 2020, thanks to a plan to decentralise the gas business.

Speaking after yesterday's Energy Policy Administrative Committee (Epac) meeting, Energy Minister Sontirat Sontijirawong said the panel approved the plan for PTT, the national oil and gas conglomerate, to operate the LNG trading centre.

Epac ordered the Mineral Fuels Department, the Energy Regulatory Commission and the Energy Policy and Planning Office to study and revise related regulations and laws to facilitate the gas operation.

The plan was initiated in 2017 by the National Energy Reform Committee to decentralise the gas business, allowing third-party participation in gas shipments.

LNG has been marketed since 2011 by PTT, which owns and operates the LNG receiving terminal in Map Ta Phut, Rayong.

PTT started providing compressed natural gas (CNG) in 2015.

The two receiving terminals in Rayong will have total capacity of 19 million tonnes a year. The first location is in Map Ta Phut, with 11.5 million tonnes a year, while the other is being built in Nong Fab with a capacity of 7.5 million tonnes.

The utilisation rate for the Map Ta Phut facility is 5 million tonnes.

The LNG trading plan creates a foothold for PTT to enter neighbouring countries.

PTT formed a joint venture with SET-listed Gulf Energy Development to conduct a feasibility study to develop a new receiving terminal in Map Ta Phut, with a capacity of 5-8 million tonnes a year. PTT and Gulf were the winning bidders for the third phase of Map Ta Phut seaport.

In 2019, PTT imported 5.2 million tonnes of LNG, up from 5 million tonnes the year before.

Asia controls 60% of the global volume of LNG trade, Mr Sontirat said.

"The trading platform and system will begin testing in 2020, with a schedule to launch full trade later that year," he said.

Epac forecasts the LNG trading centre to create economic value of 16 billion baht annually in the next decade and employ 16,000 workers.

The state-run Electricity Generating Authority of Thailand (Egat) has been ordered by the government to be the country's first LNG shipper under a third-party access policy with PTT.

Mr Sontirat said Egat has bought two LNG shipments totalling 130,000 tonnes.

This month, the agreement will be signed and the first delivery made. The second shipment is scheduled for delivery in April 2020.

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