Thailand's PTT Signs Second LNG MoU in Russia

Thailand’s state owned energy firm PTT has signed a second memorandum of understanding (MoU) in Russia.

On Wednesday, PTT and Gazprom signed in Saint Petersburg the MoU on cooperation in the oil and gas industry. The parties would cooperate in hydrocarbon development, LNG project development and LNG and LPG trading.

PTT earlier inked a similar MoU with Novatek. According to the MoU, the parties intend to cooperate and study potential joint opportunities in the exploration and production of hydrocarbons, the implementation of LNG projects, the supply of LNG and the development of LNG markets, and the supply of liquid hydrocarbons.

Thailand is looking to rely on imported LNG to meet domestic demand. Country’s Department of Mineral Fuels (DMF) has stated that drop in global gas prices has made it very attractive to import LNG as spot prices are now very close to the price of gas produced in Gulf of Thailand.

Last month, PTT and KOGAS signed an agreement to cooperate in the LNG value chain.

Thailand’s second LNG terminal with a capacity of 5 mtpa is expected to come online next year. The Map Ta Phut LNG receiving terminal is already operational and also has a capacity of 5 mtpa. PTT has plans to increase this capacity to ten mtpa.