Gulf Energy Development Plc has received the first lot of liquefied natural gas (LNG), supporting state efforts to foster competition in the gas market.
The company, through its wholly-owned subsidiary Gulf LNG Co Ltd, received the inaugural LNG cargo on Jan 6. Gulf LNG plans to supply LNG to its gas-fired power plants.
The LNG import aligns with the state's gas deregulation policy, aiming to promote competition, enhance energy security, increase flexibility in energy source procurement and stimulate economic growth by creating a more competitive environment within the industrial sector, according to Gulf.
The Energy Regulatory Commission (ERC) said earlier it plans to fully develop a free market for LNG trade to ensure adequate gas supply and fair prices.
LNG imports had been monopolised by national oil and gas conglomerate PTT Plc since 2011. The Electricity Generating Authority of Thailand 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, B.Grimm Power Plc, Hinkong Co, PTT Global LNG Co and Siam Cement Group -- in line with the government's policy to open the LNG market.
Gulf LNG is allowed to import up to 6.4 million tonnes of LNG annually to fuel the company's power generation assets, including independent power producer plants -- Gulf Pluak Daeng Power Plant and Gulf Sriracha Power Plant -- as well as 19 plants in the small power producer category.
Imported LNG will also be supplied to industrial customers.
Gulf LNG entered into an LNG purchase agreement with ADNOC Trading. This initial shipment will utilise PE LNG Co's Map Ta Phut LNG Terminal 2 for regasification, which will then be injected into PTT's natural gas pipeline system for delivery to Gulf Group power plants.
Gulf plans to continuously expand its natural gas business to address growing demand from diverse sectors, particularly industrial users seeking alternative suppliers.
This expansion strategy is supported by the third-phase development of Map Ta Phut deep-sea port, where land reclamation is already over 95% complete and a new LNG terminal project that is scheduled for completion in 2027.
The integrated development will support industrial growth and effectively meet the increasing demand for natural gas in the future, Gulf said.