Jera, EGCO plan LNG value-chain in Thailand

Japan's Jera has concluded a memorandum of understanding with Thai utility Electricity Generating Public Co. (Egco) to develop LNG value-chain in the southeast Asian country, the company said on April 26. They will also look to establish a supply chain for hydrogen and ammonia.

Jera said that in Asia, there is a demand both for decarbonisation and for a stable energy supply that supports economic growth. “Gas-fired power generation—which emits less CO₂ than power generation using other fossil fuels—can be a flexible supplement to intermittent renewable energy and, as an energy source indispensable to moving the energy transition forward, demand is expected to continue to grow,” it said.

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Hydrogen and ammonia—which do not emit CO₂ during combustion—are considered to have great potential as next-generation fuels that will contribute to the decarbonisation of thermal power generation, Jera added. 

Jera has an approximately 12% stake in Egco through Tepdia Generating. The company said that pursuing business opportunities to develop LNG value-chain projects and to establish hydrogen and ammonia supply chains together with Egco will enable it to contribute to expanding its earnings base, improving the reliability of its supply of LNG and next-generation fuels, and securing economic efficiency.

According to Thai media reports, Egco plans to import LNG to feed its three gas-fired power plants -- Banpong, Klongluang and Egco Cogen Replacement power plants -- all currently under construction. Gas volume for the first shipment has yet to be finalised, though the company initially expects to import 200,380 mt of LNG, Bangkok Post reported.