National oil and gas conglomerate PTT Plc has signed a 20-year purchase contract for liquefied natural gas (LNG) with Cheniere Energy Inc, a subsidiary of US-based Corpus Christi Liquefaction LLC.
PTT signed the agreement through its wholly-owned subsidiary PTT Global LNG Co.
Under the agreement, PTTGL will purchase 1 million tonnes per annum (MTPA) of LNG and the first gas delivery will be in 2026, according to PTT and Cheniere.
The deal calls for a combination of free-on-board and delivered ex-ship deliveries. The purchase price is indexed to the Henry Hub price, plus a fixed liquefaction fee.
PTT has two LNG receiving terminals in Rayong province and is building another terminal.
This year PTT expects to import LNG at 8 MTPA, up from 5.9 MTPA last year. PTT chief executive Auttapol Rerkpiboon said the company planned to manage an LNG portfolio of nine MTPA by 2030.
PTT is the only one of the seven legal LNG shippers that has long-term purchase agreements, with previous contracts for the importation of 5.2 MTPA of LNG