PTT ready to buy LNG from Shell if it can be a partner
PTT might consider purchasing liquefied natural gas from Shell if it can be a partner in Shell's gas exploration and production activities.
Panu Sutthirat, executive vice president for natural gas supply and marketing, said last week that Shell Thailand has shown an interest in entering the LNG business in Thailand and is keen to be a supplier to PTT.
Shell Thailand could construct its own LNG depot and sell LNG to industrial customers or NGV filling stations once the Energy Regulatory Commission issues regulations to govern competition in the natural gas trading business.
The regulations will allow private firms to use PTT’s gas transmission pipelines. If Shell, which operates major gas fields worldwide, wants to supply LNG to PTT, it should give PTT Group the chance to participate in some form or jointly invest in its gas fields.
Charcrie Buranakanonda, senior executive vice president for the gas business, said Shell and PTT have never had any collaboration on LNG before.
However, PTT has entered into an agreement with Qatar Liquefied Gas Co to buy 2 million tonnes of LNG per year for 20 years, starting in January 2015.
The National Energy Policy Council has assigned PTT to build another depot to store 5 million tonnes of LNG per year on top of the present 5 million tonnes per year. This means PTT will have to secure additional LNG in the future. However, Shell and PTT have not yet held formal talks on the matter.
A source from the Energy Policy and Planning Office said that it is unlikely that Shell would build its own LNG depot or LNG service stations, but it is possible that Shell might choose to focus on supplying LNG to PTT, which might have to seek additional LNG in the future.
Demand for LNG is expected to rise to 10 million tonnes per year in 20 years if planned power plants mainly run on LNG instead of coal, he added.
