12 firms bid for Egat LNG
published : 23 Apr 2019 at 04:00
newspaper section: Business
State-run Electricity Generating Authority of Thailand (Egat) has revealed 12 companies have qualified to bid to be liquefied natural gas (LNG) suppliers of 800,000 to 1.5 million tonnes per year.
Egat is expected to announce the winning bidder by Friday.
Egat governor Viboon Rerksirathai said out of 34 companies qualified to bid, 12 submitted bid envelopes to be the LNG shipper for Egat.
Eleven companies are overseas petroleum shippers: Chevron, Total, Marubeni, Emirates, Qatargas, Jera, Pavillion, Petronas, Shell, BP and Vital Asia. PTT Plc, the national oil and gas conglomerate, is the only Thai company.
Mr Viboon said Egat will sign an eight-year contract with the winning bidder by June and the first shipment will be at Map Ta Phut port in September.
"In 2019, 280,000 tonnes of LNG will be supplied as fuel for Egat's Wang Noi power plant in Ayutthaya," he said. "Egat plans to use imported LNG at the South Bangkok and Bang Pakong plants."
Separately, Egat announced it completed its crude palm oil purchasing from 31 distributors, totalling 160,000 tonnes supplied as power-generating fuel at Bang Pakong plant in Chachoengsao.
The last volume of 66,000 tonnes was shipped from a warehouse in Surat Thani on April 20, reaching the power plant in early June.
Egat's crude palm oil purchasing was worth 2.88 billion baht, ordered by the government to absorb the surplus. This measure made Egat's power generation cost reach 1.354 billion, higher than normal. The government subsidised 525 million baht, leaving 829 million for Egat.