Shell scopes out LNG trade

Shell scopes out LNG trade

Mr Asada (left) and John Abbott expand on Shell's LNG plans.
Mr Asada (left) and John Abbott expand on Shell's LNG plans.

Thailand remains an important investment spot for Royal Dutch Shell Plc, which plans to seek more opportunities to expand its liquefied natural gas business here after the LNG trade was deregulated.

The company is focused on expanding its retail and non-oil business in Thailand to help diversify risks as revenue from its oil business has dropped in line with global oil prices, said downstream director John Abbott.

For the LNG business, he said the company has concluded a deal to supply 1 million tonnes of LNG to PTT Plc, the national oil and gas conglomerate, for 15 years.

"We are the world's biggest LNG trader so we are interested in business in Thailand, where demand is rising," Mr Abbott said. "We are also interested in the overlapping maritime resource claims of Thailand and Cambodia."

Shell is waiting for the governments of the two countries to tackle that dispute before it starts investing, he said.

With its strong expertise in LNG, Shell is also a major supplier to China, particularly for big trucks.

But the company has not yet decided whether to compete in the LNG retail business in Thailand, although the government has freed up the LNG trade to allow new players after the sector was solely dominated by PTT Plc for six years.

Asada Harinsuit, chairman of Shell Company of Thailand Ltd, said the company will continue focusing on its non-oil and retail businesses to help diversify risks, particularly at a time when global oil prices remain at relatively low levels.

He said the company aims to increase the proportion of its non-oil business to 50% by 2025, up from 20%.

As a result, Shell plans to increase the number of its petrol stations in Thailand, currently numbering 521, by 30 a year.

The company also plans to renovate its petrol stations to be more attractive, including modern convenience stores to boost sales.

Mr Asada said the company is also keen to participate in Thailand's development of the Eastern Economic Corridor. He said the company will also continue to invest in R&D to create new products with higher value.

Shell has allocated up to US$40 billion (1.32 billion baht) for R&D globally.

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