Thai Egat Plans to Buy LNG in Spot Market: Press

The Electricity Generating Authority of Thailand (Egat) is looking to buy 140,000 metric tons of LNG in the spot market, local media reported October 9.

According to Bangkok Post, Egat has got bids from 40 companies. “All 40 companies are going to be qualified for this auction and the shortlist will be announced by October," said Kulit Sombatsiri, the permanent energy secretary. The winning bidders will be announced in November.

Sombatsiri said Egat plans to purchase two shipments of 70,000 mt each, expected for delivery by December. The decision to buy LNG in spot market follows the government cancellation of an eight-year LNG purchase agreement from Petronas for 1.5mn mt/yr, Bangkok Post said.

Sombatsiri said Egat should spin off two business units - LNG imports and power trade - to be wholly-owned companies because both have growth potential. The government plans to revise the Egat Act of 1968 to allow Egat to re-export and sell LNG. The law allows Egat only to import to feed gas-fired power plants.

"The new shipments of 140,000 mt is a test for Egat's LNG business and the law will be amended in 2020 to allow Egat to trade LNG," the newspaper quoted Sombatsiri as saying.