Thailand to focus on securing long-term LNG supply deals
Thailand’s imports of liquefied natural gas on long-term contracts could see a significant climb by 2036.
Currently, the country imports 5.2 mtpa of LNG on long-term contracts, however, the number could reach 35 million tons per year over the following decades, Reuters reports, citing Porrasak Ngamsompark, the acting director of the LNG management bureau at the department of mineral fuels of Thailand’s energy ministry.
Imported volumes are set to replace the declining local output, and cover the rising demand.
In order to handle the rise in imported LNG volumes the country intends to boost its regasification capacity from 10 mtpa currently to 20 mtpa over the following decade.
The infrastructure is aimed to propel Thailand to an LNG hub for the Association of Southeast Asian Nations (ASEAN) Ngamsompark said.
Depleted domestic gas fields have pushed the company to focus on imported LNG as the main source for power generation, as almost 70 percent of Thailand’s electricity is produced using natural gas as fuel.
A number of projects are either in the planning stage or have already been approved, with Electricity Generating Authority of Thailand (EGAT) set to start up an FSRU-based 5 mtpa import terminal in the Gulf of Thailand by 2023.
He added that the country will book 70 percent of its LNG imports on long-term contracts with 30 percent to come from the spot market. Talks are already ongoing with Anadarko to secure long-term LNG supply from the US company’s project proposed for the Rovuma basin off Mozambique.
LNG World News Staff