Thailand Signs New Contracts for LNG Purchases
Increasing number of LNG
purchases coupled with expansion of LNG terminals will increase the demand for Liquefied
Natural Gas (LNG) in Thailand.
Thailand: Thailand has signed new contracts for
purchasing LNG and for the expansion of terminals to increase imports in order
to mitigate the growing demand for LNG within the country. Thailand is expected
to boost its LNG imports by 75% in 2017.
PTT, an oil & gas exploration and
production company based in Thailand has decided to buy pipeline gas imports
from Myanmar. The expansion of its first LNG terminal near Rayong southeast of
Bangkok, will be completed before this summer. Another expansion has been
planned to increase the capacity to 11.5 million by 2019. Besides that PTT has
also planned to open a second terminal near Rayong to add another 7.5 million
to import capacity by 2022.
TechSci Research depicts that growing demand
for electricity, declining domestic production of natural gas coupled with
rising utilization of natural gas as feedstocks for petrochemical plants, is
boosting the overall demand for LNG in Thailand. Expansion of existing LNG
terminals, installation of FSRU (Floating Storage Regasification Unit) and
growing demand for natural gas as an alternate fuel are major factors
anticipated to positively influence the LNG market in Thailand over coming years.
According to released report of “Thailand LNG Market Demand & Supply Analysis, By Region, By Application, By LNG
Terminal, Competition Forecast and Opportunities, 2011-2025”, LNG market in Thailand is projected
to exhibit a CAGR of 7.2% during 2016 - 2025. The country mainly imports LNG
from Qatar, Australia and Indonesia. Bangkok dominated Thailand LNG market over
the past few years, on account of high population density, rising number of
industrial units and presence of gas based power plants in this region. Moreover, power sector accounted for
highest market share in Thailand LNG market over the past few years, owing to
decline in production of natural gas and rising dependence on LNG for power
generation.