Thailand’s state oil and gas company PTT plans to become an Asian regional LNG hub.
In a speech at the Gastech Virtual Summit last week, Supawat Tatthong, PTT’s Vice President for gas business development, said that the country is strategically located to meet 70% of the global LNG trade.
Through existing and upcoming LNG import infrastructure, as well as expansion in its gas transmission pipeline system, Thailand aims to take advantage of the LNG growth demand in Asia.
Domestic gas accounted for 72% of the Thai gas supply last year, while 16% of supply came from Myanmar and 12% from LNG. Tatthong said that however, in 2036, domestic gas supply will only account for 29% of the country’s needs, while LNG will meet 67% of the demand. Myanmar gas will hold a 4% share in the Thai gas market.
PTT is working closely with the Thai government to enable the regional hub to become a reality, allowing traders to import, store and export LNG out of the country, he said.
Thailand “sits in the middle of demand growth” ready to support the China and India, as well as markets in south and southeast Asia, Japan, South Korea, Taiwan and West Australia, he said, adding, “Thailand is strategically located for regional connectivity within 2,500 nautical miles of 70% of global trade.”
LNG import terminal capacity is to grow from the current 11.5 mill tonnes per annum to 29.8 mill tonnes.
The new LNG terminal capacity will come from the building of the 7.5 mill tonnes per annum Terminal 2 (Nong Fab) set to come online in 2022, and the 8-10.8 mill tonnes Terminal 3 (MTP Phase 3) expected to start operations in 2026.
So far, Thailand has imported 300 LNG cargoes from 18 countries, he said. It holds long-term contracts with suppliers including Qatargas, but also imports under the spot market.