Thai SGP to Set Up LNG Unit

Thai Siam Gas and Petrochemicals (SGP) will be setting up a new subsidiary that will work in Thailand’s LNG sector, which is currently dominated by state owned PTT.

The company May 8 informed the Stock Exchange of Thailand that its board has passed a resolution to establish a new subsidiary called Siam LNG Company. SGP is at present Thailand’s second largest liquified petroleum gas trader.

Thailand has been looking to liberalise sectors such as power, LNG and pipeline and bring in more private participation. In the LNG space, PTT is the dominant player which operates country’s only receiving terminal, Map Ta Phut. PTT itself, last year, established a new joint venture company to carry out business related to LNG.

Demand for gas in Thailand is expanding while local supplies have been declining, forcing it to rely more on imported LNG. Last year, Qatargas delivered the first Q-Max cargo of LNG (270,000 m³), under its long-term agreement with Thai PTT.