OREANDA-NEWS. Dr. Pailin Chuchottaworn, President & CEO of PTT Plc., revealed that today (8 January 2015), Qatar Liquefied Gas Company Limited (3) ("Qatargas 3") officially delivered the first LNG shipment to PTT at approximately 90,000 tons, according to the Long Term Sales and Purchase Agreement to supply LNG for 2 million tons per annum, or approximately 280 million cubic feet per day for the next 20 years. The agreement, which was signed in 2012, was PTT Group's first Long Term Sales and Purchase Agreement for LNG.

"Thailand's demand for natural gas is increasing every year. Natural gas is the fuel used in the electricity generating, industrial, petrochemical, and transportation sectors. However, the supply of natural gas in the Gulf of Thailand and Myanmar is on a downward trend. Therefore, liquid natural gas or LNG is an important alternative in sufficiently supporting the nation's energy demand. PTT has imported LNG since 2011 through the spot market, with the imported volume constantly growing. Currently, imported LNG amounts to 2 million tons per annum. According to the Power Development Plan for 2010 - 2030 (PDP 2010 Vol.3), it is estimated that approximately 5 million tons of LNG will be imported in 2015. In this regard, PTT LNG Co., Ltd. is in the process of expanding the capacity of its receiving terminal to be able to accommodate 10 million tons per annum, from the current capacity of 5 million tons per annum. The expansion is expected to be completed in 2017."

PTT and Qatargas entered into the first LNG sales and purchase agreement in 2011 in the form of a spot contract. The first LNG cargo was used to test the system designed at the First LNG receiving station of PTT Group and ASEAN in Mab Ta Phut, Rayong province. Later that year, LNG imports were used to substitute the missing gas from the gas pipeline system due to offshore problems. This marked the start of good relations between the two companies. Qatargas is the largest LNG producer and exporter in the world, with an annual LNG production capacity of 77 million tons per annum, equivalent to approximately 33% of total worldwide LNG sales. Qatar has total natural gas reserves of approximately 900 trillion cubic feet, sufficient to support natural gas demand for more than 100 years. The business alliance between PTT and Qatargas will strengthen the energy security of the country, ensuring that Thais will have sufficient energy resources long into the future.