PTT enlists Cheniere for LNG supply deal

Cheniere Energy said July 26 it had signed a 1mn metric tons/year LNG sales and purchase agreement with a subsidiary of Thailand's PTT.

PTT's wholly owned subsidiary PTT Global LNG will take free-on-board and delivered ex-ship LNG for 20 years from Cheniere's 15mn metric tons/year Corpus Christi facility. The contract will commence 2026 and is tied to the Henry Hub index with a fixed liquefaction surcharge.

Cheniere's president and CEO Jack Fusco said it was PTT's first direct LNG contract for a US supplier, reflecting the "critical need" for robust LNG globally, and especially in high-growth economies such as those in Southeast Asia. 

PTT is building import capacity at Thailand's LNG terminals and expects to reach 19mn mt/yr of import capacity by the end of this year, following the earlier-than-anticipated launch of PTT's Nong Fab regasification terminal in June. By 2030, PTT hopes to become a "global player" with 9mn mt/yr of LNG supplies under its management, according to CEO and president Auttapol Rerkpiboon. 

Cheniere's Fusco added: "We are pleased to enter into this 20-year SPA with a subsidiary of PTT, the state-owned oil and gas company of Thailand which developed, owns and operates Thailand’s first LNG import terminal, and is an energy leader in a key, fast-growing Southeast Asian market."