Thailand’s LNG imports surge as economy bounces back
PTT, Thailand’s largest oil and gas conglomerate, is planning to import up to 6 million tonnes of liquefied natural gas (LNG) this year thanks to a surge in demand.
Noppadol Pinsupa, PTT’s director for corporate governance and sustainability, said on Saturday that PTT’s LNG imports will be 2 million tonnes higher than the amount imported last year. He reckons it will take at least 100 ships to deliver the 6 million tonnes.
PTT has already ordered 4 million tonnes of LNG at less than US$20 per million BTU (British thermal unit), which was 50% cheaper than last year, Noppadol said.
He added that the purchase complies with the Energy Regulatory Commission’s regulations, and the drop in LNG spot prices will likely bring down the cost of electricity.
Noppadol also rejected the likelihood of LNG prices climbing like they did last year, saying he expects the price to range between $15 and $16 per million BTU as the US is producing more gas while the European Union is reserving more.
Separately, PTT’s executive vice president Prasong Intaranongpai said the company wants to maintain its competitiveness in the hydrocarbon-based business and establish new high-value products to keep up with the rest of the world. PTT also intends to make fresh deals in industries other than energy, he added.
PTT has created systems to help manage the country’s oil industry as prices fluctuate, such as the use of the Hydrocarbon Value Chain Collaboration Centre, he said.
According to PTT, the total volume of oil traded on a daily basis exceeded 1.5 million barrels in 2022. This high demand is likely to remain for a while as the Siam Commercial Bank’s Economic Intelligence Centre (SCB EIC) expects to see economic growth until the end of the third quarter.
The centre reported on Saturday that the pick-up in the tourism industry has given the Thai economy a much-needed boost and it expects to see a 2.7% rise in growth in the third quarter compared to the previous quarter.
It also said that since energy prices are dropping, inflation will also drop in May.
However, the economic growth in the last quarter may be hampered by a delay in the implementation of the annual national budget if the new government is not formed in time, the centre said.
