MAP TA PHUT, RAYONG : The giant oil and gas conglomerate PTT Plc is seeking long-term supply contracts for liquefied natural gas (LNG) to serve a sharp increase in domestic demand.
Phanu Suthirate, executive vice-president and managing director of PTT LNG Co, said the long-term contract suppliers will include its upstream petroleum subsidiary, PTT Exploration and Production Plc (PTTEP) and other LNG traders.
Last year, PTT signed a long-term LNG supply contract with Qatar Gas for 2 million tonnes annually with deliveries starting in 2015.
"We are talking to many LNG traders in the US, Australia and Africa about the possibility of forming joint ventures in some areas of resources," said Mr Phanu.
In November 2011 PTT started its LNG receiving terminal in Map Ta Phut, Rayong, with storage capacity of 5 million tonnes in the first phase.
In 2012, PTT imported 1 million tonnes of LNG to serve domestic demand.
PTT expects LNG imports to increase by 50% this year to 1.5 million tonnes before doubling to more than 3 million tonnes next year.
PTT is developing a second phase of the LNG receiving terminal at a cost of 21 billion baht with a target to operate in 2017 with an annual capacity of 5 million tonnes.
Although the US has reserves of over 482 trillion cubic feet, traders prefer selling the gas to companies in countries that have a free-trade agreement with the US, which Thailand does not have.
Last year, Japan and South Korea were major importers while major exporting countries were Qatar, Malaysia, Indonesia and Australia.
Chakree Buranakanon, PTT's vice-president for natural gas business, said energy consumption is expected to grow by 3-3.2% per annum between 2013 and 2022, with natural gas accounting for 39% of the total, followed by oil (25%), coal (17%) and renewable energy (18%).
In a related development, PTT plans to issue a new tranche of debentures worth 20 billion baht late next month.
The seven-year unsecured and unsubordinated dentures will be offered to existing bondholders and investors. The baht bond will be issued on Nov 27 and redeemed on Nov 15, 2020.
Reservations are set for Nov 18-19 for holders of bonds which are set to be redeemed this month and next, and Nov 21 for all existing bondholders.
Shares of PTT closed yesterday on the SET at 319 baht, unchanged, in trade worth 1.03 billion baht.