PTT Plc has introduced PTT Global LNG Co, a liquefied natural gas (LNG) trading and marketing arm, as the national oil and gas conglomerate looks to boost revenue from LNG.
PTT Global LNG is a venture between PTT and subsidiary PTT Exploration and Production Plc (PTTEP), holding a 50% stake each, with an initial registered capital of 8 million baht.
Wirat Uanarumit, chief operating officer of PTT's upstream petroleum and gas business, said the boards of PTT and PTTEP approved the establishment of the venture last week, in line with the group's policy of consolidating value chains in the gas business.
"The new LNG business will focus on joining business and production opportunities through a 10-20% joint venture" Mr Wirat said.
While he declined to say where the company will focus efforts, he said the official signing of the joint venture is expected to happen soon.
Mr Wirat said PTT set up the new business in order to add value to existing and future assets on the gas value supply chain. It will also help PTT improve its midstream operation capabilities, which it currently lacks.
PTT runs a fully-integrated downstream gas supply chain, from pipelines to gas separation and LNG receiving terminals. While most of these facilities are located in Rayong's Map Ta Phut Industrial Estate, PTTEP operates oil and gas exploration and production fields in more than 10 countries.
PTTEP also has a 8.5% share in a joint venture in Mozambique's Rovuma Offshore Area 1. A production plan for this facility will be drawn up by the end of the year. Experts believe Mozambique will be one of leading LNG suppliers in the global market.
According to the 2015-2036 national power development plan, Thailand is expected to import more than 35 million tonnes of LNG after 2035, up from 3 million tonnes this year, assuming the LNG market remains a PTT monopoly.
The commercial operations delay of the 800-megawatt coal-fired power plant in Krabi has resulted in the energy policymaker conducting a feasibility study for a gas-fired power plant.
PTT is operating an LNG facility that can handle 10 million tonnes in Map Ta Phut. It is also designing a second unit in Nong Fab, which will open in 2023 with a capacity of 7.5 million tonnes.
Noppadol Pinsupa, senior executive vice-president of gas business at PTT, said Thailand's demand for gas is growing quickly. He expects LNG imports will top 10 million tonnes in 2019, up from 3 million tonnes this year.
Gas volumes from Myanmar's Martaban Sea are expected to decline, so the company is conducting a feasibility study to develop floating storage re-gasification units.
Meanwhile, Energy Minister Anantaporn Karnchanarat said LNG business will play a significant role in the Thai power market, due to declining gas resources in Thailand and Myanmar.
Yesterday, the Energy Ministry conducted a seminar on the Norway-Thailand LNG Partnership.
