LNG

Thailand’s Electricity Generating Public Company (Egco) has applied to the state regulator for a licence to import liquefied natural gas, making it the sixth company to be on the country's list for more LNG supplies.

Egco submitted the application to the Thai Energy Regulatory Commission (ERC) for permission to import 250,000 tonnes per annum to fuel three gas-fired power plants.

The company said the power plants included the 256-megawatt Banpong plant in Ratchaburi, the 121MW Klongluang facility in Pathum Thani and the 120MW co-generation plant in Rayong province.

Egco said the Banpong and Klongluang plants could use additional supplies. They already have an existing sales agreement with Thai state oil and gas company PTT, previously the nation’s sole importer of LNG.

“In the long term, the company may coordinate with other LNG shippers to make purchases through the same contracts when global LNG prices are declining or when demand for gas in Thailand declines,” said Egco.

The four other LNG import licence holders are the state’s Electricity Generating Authority of Thailand (EGAT), Gulf Energy Development, Hin Kong Power and B.Grimm Power.

PTT previously had a monopoly on imports until EGAT was given an LNG import licence in 2019.

The Egco group has a total of 28 power plants in Thailand and in other Asian countries, including Laos, the Philippines, Indonesia and Taiwan.

Its existing plants have total contracted capacity of around 5,475 megawatts, while three others are under construction with total capacity of 331MW.

Egco, which is listed on the Stock Exchange of Thailand, saw its earnings hold up despite the challenges of the Covid-19 pandemic.

The company posted third-quarter net profits of 2.26 billion Thai Baht ($74.9M) compared with 2.82Bln baht ($93.25Bln) in the same three months of 2019, a decline of around 19.5 percent.

Third-quarter revenues amounted to 9.83Bln baht ($325M) versus 10.71Bln baht ($353M) in the prior-year quarter.

The new LNG importers will be accommodated by the expanded capacity at the Map Ta Phut LNG import terminal in Rayong that has been operating since 2011.

PTT has completed several expansions at Map Ta Phut with the most recent from 10.7 MTPA capacity to 11.5 MTPA.

A second regasification terminal adjacent to Map Ta Phut and called Nong Fab LNG is expected to be completed in 2022 with total regasification capacity of 7.5 MTPA. 

Gulf Energy Development Public Co. of Thailand said it signed a cooperation agreement to develop a gas-fired power project and liquefied natural gas import terminal in Ninh Thuan province of southeast Vietnam.

Thailand is building a new LNG import terminal near the current Map Ta Phut terminal in eastern Rayong province with the first phase costing 28 billion baht ($913 million) and involving a joint venture between Thai power company Gulf Energy and state-owned Thai energy firm PTT.