FRIDAY, March 29, 2024
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BGrimm Power signs deal to use PTT terminal for processing LNG

BGrimm Power signs deal to use PTT terminal for processing LNG

BGrimm LNG Ltd signed an accord with PTT LNG on Tuesday to utilise the latter’s liquefied natural gas terminal in Rayong, the company said in a press release.

BGrimm LNG Ltd signed an accord with PTT LNG on Tuesday to utilise the latter’s liquefied natural gas terminal in Rayong, the company said in a press release.

The Terminal Use Agreement, concluded at the Centara Grand Hotel Central Plaza Ladprao, is part of BGrim’s foray into the LNG business and marks liberalisation of natural gas trading in Thailand.

BGrimm LNG, a wholly owned subsidiary of BGrim, earned Energy Regulatory Commission authorisation on May 27, 2020, to ship LNG to the country, the press statement said.

BGrimm Power signs deal to use PTT terminal for processing LNG

The company has since then taken steps to negotiate LNG purchase contracts with the world’s leading suppliers and on October 20, 2021, sought the service of PTT LNG terminal’s first facility, known as LMPT-1, to process 500,000 tonnes of LNG per year for seven years from 2023 to 2029.

BGrim president Harald Link said the accord signifies BGrimm LNG’s readiness as the first private firm to procure liquefied natural gas for the country.

The move also marks an important step in liberalising Thailand’s natural gas business, he noted.

BGrimm Power signs deal to use PTT terminal for processing LNG

The first commercial shipment of LNG procured by BGrimm is expected to arrive at the LMPT-1 terminal by early 2023, in effect launching phase 2 of free competition in the natural gas business.

LNG procured by BGrimm will go through the regasification process at LMPT-1 to covert the liquid into a gaseous state before being fed into PTT’s natural gas pipeline system for delivery to power plants and various industries, the press release added.

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