Gulf Energy Development Plc has been granted a licence to import more liquefied natural gas (LNG), bringing the total volume to 6.37 million tonnes a year, as it forges ahead to become a major trader in Thailand's LNG market after its liberalisation.
The Energy Regulatory Commission (ERC) approved its request to import an additional 5.54 million tonnes, on top of the annual quota of 0.83 million tonnes earlier allocated to the company.
"We will play a pivotal role in realising the government's policy to liberalise Thailand's LNG market which has been implemented to bring positive advantages to the country's electricity generation costs," said Yupapin Wangviwat, chief financial officer of Gulf Energy Development Plc.
More competitors in the domestic market will help stabilise LNG prices, which will benefit power plant operators, industrial manufacturers and operators of natural gas-powered vehicles.
LNG import had been monopolised by national oil and gas conglomerate PTT Plc since 2011.
The Electricity Generating Authority of Thailand (Egat) entered the market after being granted a shipping licence in 2019.
The ERC later granted licences to six other firms -- Electricity Generating Co, Gulf Energy Development Plc, B.Grimm Power Plc, Hin Kong Power Co, PTT Global LNG Co and Siam Cement Group -- in line with the government's policy to open the LNG market.
Gulf operates LNG shipping through its wholly-owned Gulf LNG Co.
Of the 0.83 million tonnes of LPG, 0.3 million tonnes feed 19 small power producers (SSPs) under Gulf Group and 0.5 million tonnes are supplied to PTT Natural Gas Distribution Co (PTTNGD).
Gulf owns a 40% share in PTTNGD after acquiring the stakes from International Power S.A. in 2020 under an investment budget worth US$90 million (around 2.7 million baht).
Besides the 19 SPPs, Gulf also runs six power plants under the independent power producer (IPP) scheme, with a combined capacity of 10.84 gigawatts.
Three of the IPP facilities, with a capacity of 6.84GW, are already in operation.
Gulf and PTT Group also jointly set up Gulf MTP LNG Terminal Co, which won a bid for the third-phase development of Map Ta Phut deep-sea port in the eastern province of Rayong.
Gulf, which holds a 70% share in the new company, is granted a right to design, construct and operate an LNG terminal with a carrying capacity of 10.8 million tonnes a year.