UK-based energy giant BP signed an agreement to supply approximately 1 million tons of LNG per year to Thailand’s PTT.
Under the agreement, LNG supply will start in 2017 with an agreed term of 20 years, BP said in its statement on Thursday.
Liquefied natural gas will be sourced from BP’s diverse portfolio of LNG, including the Freeport LNG project in the United States.
BP has a liquefaction tolling agreement for over 4.4 mtpa LNG capacity at the Freeport LNG project in Texas, USA. The project is currently under construction with production expected to begin in 2018.
Paul Reed, chief executive of BP Integrated Supply and Trading noted that Thailand has become a significant LNG market.
Earlier in October, PTT’s CEO, Tevin Vongvanich was reported as saying that the deal was close to completion, as the company prepares to up it annual LNG imports to 5 mtpa by 2017.
Thailand is at the last phase of gas production due to the decline in domestic resources, and the company’s investment budget, which has been set at around US$1.25 billion will focus on the infrastructure like LNG terminal and gas pipelines.
LNG World News Staff