Qatargas in 20-year LNG deal with Thai firm

Qatargas will deliver 2mn tonnes of liquefied natural gas (LNG) to Thailand’s PTT for 20 years, beginning from 2015.

Qatargas yesterday entered into a pact with PTT, marking the latter’s first long-term LNG sales and purchase agreement.

Qatargas sees Thailand as an evolving LNG market and recognises its potential within South East Asia to absorb significant quantities of LNG in the future.

The agreement was signed by HE Dr Mohamed bin Saleh al-Sada, Minister of Energy  and Industry and Chairman of Qatargas, and Pailin Chuchottaworn, CEO and President of PTT.

“This agreement underpins Qatar’s proven capability to meet the LNG requirement of the customers around the globe safely and reliably,” al-Sada said.

“This is a momentous occasion for us as this is the first long-term agreement for Qatargas in South-East Asia and our first term contract with PTT. Qatari LNG continues to play a key role in helping countries around the world improve the diversity of their energy supplies,” according to Khalid bin Khalifa al-Thani, CEO of Qatargas.

Stressing that Qatargas and PTT have consistently maintained cordial relations, Chuchottaworn said, “In our initial preparation for LNG imports, Qatargas supported us and delivered LNG commissioning cargoes.”

In 2011, Qatargas delivered the first commissioning cargo to Map Ta Phut LNG receiving terminal, Thailand’s first and only LNG receiving terminal. Since then, Qatargas has sold several spot cargoes to PTT.

The current capacity of Map Ta Phut LNG receiving terminal is 5mn tonnes per year and PTT has plans to double the capacity. The terminal is currently compatible with Q-Flex vessels with plans to receive Q-max vessels in the future.