Thailand’s state energy operator PTT Public Company Limited (PTT) has secured long-term liquefied natural gas volumes by signing a firm supply deal with the largest US exporter Cheniere Energy.
The PTT subsidiary, PTT Global LNG Company Ltd (PTTGL), signed the sale and purchase agreement with Cheniere to book cargoes from the Corpus Christi export plant in Texas.
Under the SPA, PTTGL has agreed to purchase 1 million tonnes per annum of LNG from Corpus Christi Liquefaction for 20 years beginning in 2026.
The agreement is for a combination of both free-on-board (FOB) shipments and delivered ex-ship (DES) cargoes.
“This customized structure represents a further evolution in Cheniere’s commercial offerings tailored to the specific needs of LNG customers around the world,” said the Houston, Texas-based company.
The purchase price for LNG under the SPA is indexed to the US benchmark Henry Hub natural gas price, plus a fixed liquefaction fee.
Auttapol Rerkpiboon, PTT’s President and Chief Executive, said that by year-end PTT’s LNG receiving capacity will increase with a new terminal in commercial operation.
Thailand’s new Nong Fab LNG facility in Rayong province, the nation’s second onshore import terminal, has received first volumes of LNG for commissioning and is on track for full commercial start-up at the end of 2022.
PTT is expanding regasification capacity and LNG imports after completing several expansions at the single existing Thai import terminal at Map Ta Phut, which can now handle 11.5 MTPA.
The Nong Fab terminal is adjacent to the Map Ta Phut industrial area in Rayong and will have total regasification capacity of 7.5 MTPA.
“LNG as is a major transition fuel which supports both energy security and sustainability,” said PTT CEO Auttapol.
“Our ambition is to move forward with the future energy while ensuring energy security. We actively engage in the LNG business and target to be a global LNG player by managing an LNG portfolio of 9 MTPA by 2030,” he stated.
Jack Fusco, Cheniere’s President and Chief Executive, said he was pleased to enter into this 20-year SPA with a subsidiary of PTT.
“This is the first direct LNG contract from a US LNG producer for PTTGL, and this agreement not only reflects the critical need for long-term, reliable LNG supply across the globe, but also the important role LNG has to play in powering growing economies for decades to come,” Fusco declared.