Thailand's PTT in advanced talks with Qatar for LNG deal - sources

Grand Gulf Energy

07/07/2023 08:11

By Chen Aizhu, Marwa Rashad and Emily Chow
       SINGAPORE/LONDON, July 7 (Reuters) - Thailand's largest
energy company, state-controlled PTT  PTT.BK , is in advanced
talks with Qatar for a 15-year liquefied natural gas (LNG)
supply deal, four trading sources told Reuters.
    The oil and gas conglomerate is negotiating a supply of 1 or
2 million tonnes per annum (mtpa), according to different
figures cited by the sources, in what would be the latest in a
spate of deals by Asian buyers to lock in long term supplies.
    A fifth industry source said that both companies are in
"serious negotiations", but added that a deal isn't expected
before the end of summer.
    QatarEnergy and PTT did not immediately respond to a request
for comment.  
    Qatar is the world's top LNG exporter and competition for
LNG has ramped up since the beginning of the war last year in
Ukraine, with Europe in particular needing vast amounts to help
replace piped gas from Russia that previously made up almost 40%
of the continent's imports.
    Asian companies, with an appetite for long-term sales and
purchase agreements, have outpaced Europe in locking in supply
from Qatar's two-phase expansion plan that will raise its
liquefaction capacity to 126 million metric tons a year by 2027
from 77 million.
    The Gulf energy giant has been in negotiations with several
other Asian buyers this year and has so far signed three LNG
supply deals with Asian buyers, with more expected later this
year.
    PTT has been seeking spot LNG cargoes this year, traders
have said, along with other companies in emerging Asian markets,
after prices of the super-chilled fuel eased from last year's
record highs.  LNG/TEND 
    PTT also signed a nine-year deal with Oman LNG at the start
of the year, which will see it receive 800,000 tons of LNG per
year beginning 2026. 
    Thailand, a net oil and gas importer, needs to increase
imports of LNG to offset a steep production fall at its gas
fields. So far, the country has imported around 6 million tons
of LNG this year versus 8.7 million tons in 2022, according to
data firm Kpler.  

 (Additional reporting by Maha El Dahan in Dubai and Chayut
Setboonsarng in Bangkok; Editing by Mark Potter)
 ((marwa.rashad@thomsonreuters.com; +447823669044; Reuters
Messaging: marwa.rashad.thomsonreuters.com@reuters.net))