LNG

Thailand’s new Nong Fab LNG regasification terminal in Rayong province, the nation’s second import facility, has received first volumes of LNG for commissioning and is on track for full commercial start-up in 2022.

PTT Group, the national energy company of Thailand, is behind the Nong Fab project.

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 million tonnes per annum.

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.

Thailand has opted for the more permanent onshore LNG terminals rather that a floating storage and regasification unit (FSRU), seen mainly as a fast-track energy solution.

The new terminal is currently being completed by Italian energy engineering firm, Saipem, and Taiwan-based CTCI Corp.

Saipem and CTCI were awarded the engineering, procurement and construction contract for the facility four years ago and with an estimated cost of around $900 million.

Experienced

It was Milan-based Saipem who announced the first volumes of LNG being introduced into the Nong Fab facility. The company is one of the world's most experienced LNG engineering firms with expertise in subsea, liquefaction and regasification projects.

“Saipem is pleased to inform that on 18 June the Nong Fab LNG regasification terminal, located in the Mueang Rayong district in Thailand and executed by Saipem in a joint venture with its partner CTCI, began offloading the first LNG from a carrier moored at the terminal jetty,” said the Saipem statement.

Saipem added that the scope of the work for the project, which began in July 2018, included two 250,000 cubic metres capacity LNG storage tanks, the regasification and pipeline eqipment and a six-kilometre trestle unloading facility as well as an administrative building.

“It is a particularly significant project which is marked by its tank capacity (the largest ever executed in Thailand) and by the world’s largest trestle in the LNG sector,” explained Saipem.

“The offloading of the first LNG was achieved thanks to the expertise, quality and efforts of Saipem’s team in Thailand as well as the strong support of the client, PTT LNG,” the company added.

Saipem stated that full commissioning and start-up were expected before year-end and would provide the country with a stable and reliable energy supply in response to increasing power demand in Thailand.

“The project, confirms Saipem’s role in the LNG and regasification sectors, thanks to its long-standing expertise in complex projects, which are always executed applying the highest safety standards,” Saipem declared.

Thailand’s energy exploration and production company PTTEP, a shareholder in Mozambique LNG, has announced a second successive natural gas discovery at a field in Malaysian waters offshore Sarawak as the nation also aims to expand LNG imports because of growing power and industrial demand.

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.