PTT's third LNG receiving terminal awaits govt position
PTT LNG Co is waiting for a clear cue from the government before proceeding with the third phase of the liquefied natural gas receiving terminal to support the Gulf Group Energy Development Co and Mitsui & Co (Thailand)'s power plants.
The cost of LNG will be higher next year due to imports from Qatar under a 2 million tonnes per year long-term contract.
The five-gigawatt plants must begin supplying electricity in 2022 under the independent power producer scheme.
Managing director Panu Sutthirat said yesterday that the investment and construction of the third phase, which will add 5 million tonnes of annual capacity, depends on the completion of the Power Development Plan for 2015.
The PDP is the master investment plan for the country’s power system development. It is prepared by the state-owned Electricity Generating Authority of Thailand. PDP 2015 will specify the number of LNG, coal and nuclear-driven power plants.
The long-term sourcing plan for LNG from the Gulf of Thailand, Myanmar and other fields will then be drafted in line with the final PDP 2015. Approval by the Energy Policy & Planning Office (Eppo) and the Cabinet is required before PTTLNG can proceed with the third phase.
For construction of the second phase with 5 million tonnes annual capacity, which the Cabinet has already approved, PTT has selected Japan’s IHI and South Korea’s Posco Engineering to undertake this US$400-million project, which is expected to be completed in 2017.
The LNG demand of less than 2 million tonnes this year is likely to be less than the 3.5 million tonnes per year target due to the sluggish economy and slower-than-expected growth in power demand.
In the past, LNG was bought on the spot market. However, next year 2 million tonnes of LNG will be imported from Qatar. The long-term contract offers supply stability, but the price may be at times higher than the spot market price, which has dropped from $15 to $10 per million BTU, equivalent to Myanmar’s price.
PDP 2015 is expected to try to reduce the number of LNG-fired power plants under Energy Minister Narongchai Akaraseranee’s policy of promoting coal and nuclear waste-recycling power plants as well as purchases from neighbouring countries, a news source at the Energy Ministry said.
