British Petroleum (BP) and Thai firm, PTT Signs an Agreement for LNG Supply
BP has signed a deal
to supply liquefied natural gas (LNG) to PTT, a Thai state-owned oil and gas
company, which will positively impact the demand for LNG in the country.
Thailand: BP, the British energy giant has sign an
agreement to supply one million tonnes of Liquefied Natural Gas annually to PTT
for a period of 20 years. BP will start the supply of LNG from this year
onwards and it will source it from its diverse portfolio. The freeport project
in the US, which is currently under construction will also be used for sourcing
LNG once it is completed by 2018. According to BP, this agreement with PTT
further demonstrates LNG supply capability in the region in near future by the
company.
TechSci Research finds out that LNG market is
picking up fast in South Asia and Thailand is turning out to be one of the
major market in the region. Moreover, growing focus on expansion of gas
pipeline infrastructure, rising demand for natural gas from downstream sectors,
declining LNG prices coupled with implementation of favorable government
policies is boosting demand for LNG across the globe. Increasing focus on
development of adequate support infrastructure in various developing as well as
developed economies is expected to boost LNG demand in the coming years.
According to released report of TechSci Research “Global LNG Market Demand & Supply Analysis,
By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities,
2011-2025”, global LNG supply market is forecast to
exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for
cleaner fuels; oversupply of LNG due to liquefaction capacity additions in
Australia, US and Papua New Guinea; and declining prices of LNG over the last
few years.