Petronas LNG Ltd and PTT Public Co Ltd commemorate the first cargo delivery under their long-term LNG sale and purchase agreement at a ceremony held in Thailand.
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has delivered its first liquefied natural gas (LNG) cargo to Thailand under a long-term sale and purchase agreement (SPA) between its subsidiary Petronas LNG Ltd and PTT Public Co Ltd.
The national oil company said the cargo was delivered on Thursday, July 20, to the Map Ta Phut Terminal at Rayong on the east coast of the Gulf of Thailand from the Petronas LNG Complex in Bintulu, Sarawak.
Petronas’ and PTT’s management were present at the terminal to witness the delivery via LNG vessel Puteri Intan Satu, which is owned and operated by Petronas’ subsidiary MISC Bhd
.
Petronas said Petronas LNG was committed to delivering up to 1.2 million tonnes per annum (MTPA) of LNG to PTT for a period of 15 years.
It was previously reported that Thailand’s energy policy committee had in December last year approved state-owned PTT’s proposal to buy 1 MTPA of LNG from Petronas this year and in 2018, and 1.2 MTPA from 2019 onwards.
According to a Reuters report, Thailand uses natural gas for nearly 70% of its power generation and relies more and more on LNG imports as its own domestic gas fields are being depleted.
Petronas vice president of LNG marketing & trading, Ahmad Adly Alias, said in the statement: “Petronas LNG has come a long way since our first LNG delivery in 1983. Today, we are delighted to witness another successful delivery at the start of a new long-term partnership with our neighbour PTT.
“Over the years, we have built our capacity to a combined 34 MTPA. The LNG under this SPA will be sourced globally from Petronas’ portfolio of supply.”
Petronas has been supplying piped natural gas to Thailand from its Yetagun project in Myanmar, as well as from the Thailand–Malaysia Joint Development Area in the Gulf of Thailand.
“With the strong relationship between the two companies, PTT and Petronas are exploring further opportunities to collaborate in LNG and natural gas value chain,” Petronas said.
The Bangkok Post reported earlier this week that PTT was planning a joint venture (JV) with Petronas to develop an LNG plant facility in Malaysia.
Wirat Uanarumit, PTT chief operating officer for the upstream petroleum and gas business, was quoted as saying that the two companies made a tentative agreement last month, with PTT expected to hold 10% of the JV.
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