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Market Chatter: Thailand's PTT Seeks to Increase LNG Purchases, Diversify Supply

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Thailand's PTT is in discussions to increase its liquefied natural gas purchases from several regions, including the US Gulf Coast, as a means to diversify its supplies and grow its trading business, Bloomberg reported Tuesday, citing Chief Executive Officer Kongkrapan Intarajang in an interview.

The state-controlled energy company is also willing to acquire a minority interest in LNG export projects if that ensures more favorable contract terms, Intarajang said. Asian energy companies are dealing with high LNG prices due the disruption to flows through the Strait of Hormuz, with buyers looking to lower risk by securing supplies from outside the Persian Gulf, the report said.

Intarajang said while not buying LNG from the Middle East was not an option, it was also seeking to diversify outside Hormuz and have flexible terms through a mix of long-term and spot cargoes, including from Australia and Canada, provided prices were competitive.

The Thai company intends to increase its LNG trading volumes by fivefold by 2035 to 15 million tons a year, with over 50% of this supply sourced through long-term contracts and through deals inked over the next few years, he said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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