May 3, 2008
Thai PTT eyes LNG from Indonesia’s Tangguh
Thailand's top energy firm PTT is in talks to buy liquefied natural gas (LNG) from Indonesia's Tangguh project, Reuters quoted a PTT official as saying Friday.
If a deal comes through, the LNG will be sourced from volumes contracted to Sempra Energy's new LNG terminal in Mexico, a source close to the talks said, the latest sign of global producers shifting their focus to higher-paying Asian importers.
PTT, which does not now import LNG, would begin importing 1 million tonnes of the super-cooled gas each year from 2011 or 2012, PTT's Chitrapongse Kwangsukstith told Reuters. He declined to give a timeframe for the duration of the contract.
"We're still working on the details but we should be able to finalise whether to buy it soon," Chitrapongse, chief operating officer of PTT's upstream and gas operations, said. PTT was likely to sign a deal within months, the source said.
Natural gas accounts for two thirds of the fuel used to generate electricity in Thailand.
In 2006, PTT signed a preliminary agreement with Iran's Pars LNG Ltd to buy 3 million tonnes of LNG a year for 20 years, but the deal has been delayed over disagreements on pricing.
PTT is also in talks with other LNG suppliers, such as from South Afica, the Middle East, Indonesia and Australia.
PTT is building a $700 million LNG receiving terminal at Map Tha Put in the eastern Thai province of Rayong, which is expected to come into operation in 2011.
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