Thailand’s Largest Energy Conglomerate Enters LNG Sale and Purchase Agreement with US Company

Aug 2022

Corpus Christi Liquefaction (CCL), a subsidiary of the Texas-based Cheniere Energy, has entered into a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with PTT Global LNG Company Limited (PTTGL), a wholly-owned subsidiary of PTT Public Company Limited (PTT), Thailand’s largest state-owned, multinational energy company.

Under the SPA, PTTGL has agreed to purchase 1.0 million tons per annum (mtpa) of LNG from CCL for twenty years, beginning 2026. The SPA calls for a combination of free-on-board (FOB) and delivered ex-ship (DES) deliveries. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee. This is the first direct LNG contract from a US LNG producer for PTTGL.

By the end of 2022, PTT’s LNG receiving terminals will be able to accommodate a regasification capacity of up to 19 million tons per year.

According to PPT´s president, Thailand is set to become a hub for trading LNG, re-exporting it to markets such as Japan, China, Cambodia, and Laos. It is expected that by 2030 Thailand would export 9 million tons of LNG.

(Sources: Cheniere Energy; The Nation)

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