Thailand is seeking to secure more liquefied natural gas (LNG) as sanctions threaten supplies from Myanmar and a steep production fall is registered at the offshore Erawan field, which provides the lion’s share of the country’s gas needs. Thailand is already a net oil and gas importer, and in 2021 it relied on imports for nearly 75% of its electricity, crude oil, coal and natural gas needs.
The Energy Regulatory Commission (ERC) increased LNG import quotas to offset Erawan’s decline, bringing total imports to 9.7 million tons for 2022, up from 6.4 million tons in 2021.
In March 2022, it was reported that B.Grimm Power became the first private company to procure LNG for Thailand, after it reached an agreement with national oil and gas conglomerate PTT to use its LNG receiving and regasification facility in Rayong. The move was hailed as a key step in liberalizing the natural gas trade in Thailand. In 2020, the company was authorized by the ERC to be one of seven importers of LNG, a market that was previously monopolized by PTT.
It is expected that the first commercial shipment of LNG procured by B.Grimm LNG will arrive by early 2023 and kick off a phase of free competition in the natural gas business.
PTT is building a second LNG terminal in Rayong. The facility has a capacity of 7.5 million tons, and is scheduled to start operations by mid-2022.
(Source: Bangkok Post)
