Thailand plans to sign LNG supply deal with Qatar

Tuesday, 29 January 2008

The minister, speaking on behalf of state-controlled energy company PTT, said the supply contract with Qatar would rise to 2 MTPA within a few years of the start date, though he didn’t say when the SPA would be signed.

GS Engineering & Construction of South Korea recently signed a contract to build the Thai terminal, which will be located at Ta Phut, 220 kilometres southeast of the capital, Bangkok.

It will consist of two 160,000 cubic metres LNG storage tanks as will as vaporizer and jetty facilities. The lump sum turnkey contract was worth $390 million to the Koreans out of the total project cost of $540M and would be underwritten by the Korea Export Insurance Corp.

About two-thirds of power plants in Thailand use natural gas to generate electricity and the country has been attempting to boost its supplies.

In the past couple of years, Thailand has signed an agreement on the purchase of natural gas from neighbouring Myanmar. It has also negotiated for a joint-venture investment and purchase of pipeline gas from the Natuna gas field in Indonesia.