PTT to debut LNG trading by year-end

PTT to debut LNG trading by year-end

SET-listed PTT Plc, the national oil and gas conglomerate, will launch a trading business for liquefied natural gas (LNG) by the end of this year.

Wirat Uanarumit, chief operating officer for upstream petroleum, said PTT is making plans for the first LNG cargo but has yet to finalise actual shipment volumes.

Before starting trading LNG officially, PTT will hold a trial. It will also recruit new staff to support LNG operations.

"We want to be one of the world's trading hubs for LNG because this gas has high potential for the coming years," Mr Wirat said.

PTT received approval for LNG trade from policymakers several years ago.

The group is in talks with several LNG producers in Alaska, as well as other potential partners, to hammer out a master agreement and finalise plans in order to secure LNG supply.

PTT has two LNG receiving terminals in Rayong province. The first unit is at Map Ta Phut, with a capacity of 10 million tonnes a year, but just 40-50% has been utilised over the last two years.

The site will expand capacity to 11.5 million tonnes by 2019.

PTT is also developing a second unit at Nong Fab in the same province. A contract for engineering, procurement and construction at the site, worth 38.5 billion baht, was awarded to Italian oil and gas contractor Saipem and Taiwanese construction firm CTCI.

The Nong Fab site will have capacity of 7.5 million tonnes a year.

With the two LNG receiving terminals combined, PTT will run at a capacity of 19 million tonnes a year.

Mr Wirat said PTT has already secured LNG resources from long-term purchase contracts with Qatar (2 million tonnes a year), Shell BP (2 million tonnes) and Petronas (1.2 million tonnes).

PTT also gets LNG output from PTTEP, an oil and gas drilling subsidiary, through an 8.5% stake in Mozambique's offshore Rovuma Area 1.

PTTEP has delayed the final investment decision on buying LNG from the Rovuma project to early next year.

US-based Anadarko Petroleum Corporation is the main operator and majority shareholder in that area.

PTT shares closed Friday on the Stock Exchange of Thailand at 51.75 baht, down 75 satang, in trade worth 2.5 billion baht.

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