• Natural Gas News

    Thai Panel Asks State Utility to Review LNG Import Plan

Summary

In April Egat had shortlisted 12 companies to supply up to 1.5mn mt/year of LNG.

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, Liquified Natural Gas (LNG), Security of Supply, Corporate, Import/Export, Contracts and tenders, Political, Supply/Demand, Contracts and tenders, News By Country, Thailand

Thai Panel Asks State Utility to Review LNG Import Plan

Thailand’s Energy Policy Administration Committee (Epac) has asked state-owned utility Electricity Generating Authority of Thailand (Egat) to review its plan to import up to 1.5mn metric tons/year of LNG, according to a report published by Bangkok Post May 21.

In April Egat had shortlisted 12 companies to supply up to 1.5mn mt/year of LNG. Earlier this month the company announced Malaysia's Petronas LNG was selected as the winning bidder.

According to the newspaper, last week Epac, which falls under the energy ministry, suspended Egat's plan because the Energy Policy and Planning Office (Eppo) has doubts about the volume of LNG matching utilisation rates. 

"The office is concerned that once Egat makes the massive LNG purchases, they cannot be fed to generate the power, resulting in a 'take or pay' situation," said energy minister Siri Jirapongphan. 

PTT and Egat are the only two agencies that are eligible to import LNG. Egat's 1.5mn mt/yr contract is the first tranche, while PTT has signed purchase contracts totalling 5.2mn mt/yr, Bangkok Post reported.

Jirapongphan said Epac has ordered PTT and Egat to revise forecasts and plan for new imported LNG for 2020 to be in line with the imported volume of PTT, the newspaper added.