National oil and gas conglomerate PTT Plc is asking the Energy Regulatory Commission (ERC) to consider granting it a second liquefied natural gas (LNG) shipping licence in a move to drive the state plan to make Thailand a regional LNG trading hub.
The company, which recently submitted an application to the ERC, plans to use the new licence through its subsidiary, PTT Global LNG Co (PTTGL), a joint venture with PTT Exploration and Production Plc (PTTEP).
Wuttikorn Stithit, senior executive vice-president for gas business at PTT, said the second licence will enable PTT to trade more gas in addition to the gas sales agreements it made with buyers at a fixed volume.
Most buyers are large power plant operators, including state-run Electricity Generating Authority of Thailand (Egat), independent power producers and small power producers.
A Thai law prohibits gas exports, so PTT has been conducting a trial since 2019 based on plans to import LNG for re-export in a sandbox overseen by the ERC. The trial ends this year.
Mr Wuttikorn said PTT selected PTTEP as its shareholder in the subsidiary because PTTEP plans to have full integration of midstream gas supply chains and it also wants to increase gas production over the long term.
PTT prepared for the regional LNG trade policy since 2017 by setting up PTTGL.
PTTGL's registered capital is 8 million baht.
Egat was also granted an LNG shipping licence by ERC in 2019. It is ready to embark on LNG trade after its trading trial ended last year.
Ranee Kositvanich, deputy governor of Egat, said the organisation is waiting for a clearer policy from gas authorities, who are conducting a feasibility study on the second phase of LNG trade.
The second phase is meant to allow for free LNG trade in the region, following a first phase focused on gas supply for national energy security.
This year Egat plans to import 1.9 million tonnes of LNG, and 1.8 million tonnes next year.
In another development, PTT is discussing with gas producers in the Gulf of Thailand the possibility of increasing their gas supply for the country to prevent gas shortages if PTT cannot start operations in the Erawan gas field.
PTT cannot access the area to install production facilities following a legal dispute between the Mineral Fuels Department and US-based Chevron Corp on the decommissioning costs of transferable assets, as Chevron's operation concession at Erawan is scheduled to expire in April of 2022.