Tuesday, September 26, 2017

Thailand: Shell scopes out LNG trade

Thailand: Shell scopes out LNG trade

Thailand remains an important investment spot for Royal Dutch Shell Plc,
which plans to seek more opportunities to expand its liquefied natural gas
business here after the LNG trade was deregulated.

The company is focused on expanding its retail and non-oil business in
Thailand to help diversify risks as revenue from its oil business has
dropped in line with global oil prices, said downstream director John
Abbott.

For the LNG business, he said the company has concluded a deal to supply 1
million tonnes of LNG to PTT Plc, the national oil and gas conglomerate, for
15 years.

"We are the world's biggest LNG trader so we are interested in business in
Thailand, where demand is rising," Mr Abbott said. "We are also interested
in the overlapping maritime resource claims of Thailand and Cambodia."

Shell is waiting for the governments of the two countries to tackle that
dispute before it starts investing, he said.

With its strong expertise in LNG, Shell is also a major supplier to China,
particularly for big trucks.

But the company has not yet decided whether to compete in the LNG retail
business in Thailand, although the government has freed up the LNG trade to
allow new players after the sector was solely dominated by PTT Plc for six
years.

Asada Harinsuit, chairman of Shell Company of Thailand Ltd, said the company
will continue focusing on its non-oil and retail businesses to help
diversify risks, particularly at a time when global oil prices remain at
relatively low levels.

He said the company aims to increase the proportion of its non-oil business
to 50% by 2025, up from 20%.

As a result, Shell plans to increase the number of its petrol stations in
Thailand, currently numbering 521, by 30 a year.

The company also plans to renovate its petrol stations to be more
attractive, including modern convenience stores to boost sales.

Mr Asada said the company is also keen to participate in Thailand's
development of the Eastern Economic Corridor. He said the company will also
continue to invest in R&D to create new products with higher value.

Shell has allocated up to US$40 billion (1.32 billion baht) for R&D
globally.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1331515/shell-scopes-out-lng-trade

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

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