Thailand: PTT floating unit decision early 2017

Thailand: PTT floating unit decision early 2017

PTT Plc, national oil and gas conglomerate, is likely to decide the amount
it will invest on its floating storage regasification unit (FSRU) project by
early next year, says executive vice-president, Noppadol Pinsupa.

The FSRU will be used for imported gas from the Middle East to produce
liquefied natural gas (LNG). The floating unit will be located at Myanmar's
Martaban Sea.

Mr Noppadol said the PTT would need to decide quickly due to the rapid
depletion of natural gas resources in Myanmar's Yadana and Yetakun gas
fields.

The LNG produced at the floating unit is to offset the drop in supply from
Yadana and Yetakun to three power plants in Thailand. These two gas fields
are major fuel suppliers for power-generating plants in Thailand's western
provinces.

"We expect to see the gas supply from the two Myanmar blocks to begin to
deplete in the next five to six years. To build up a new facility is
time-consuming, so we have to decide quickly on new investment to prevent
the disruption," said Mr Noppadol.

The floating unit will be a joint venture between Thai and Myanmar's state
utilities at equal stakes, which means the investment will need to seek
approval from both countries' authorities before construction can begin.

The FSRU is tentatively planned to have a receiving capacity of LNG at 3
million tonnes a year.

On another project, PTT's 5-million-tonne LNG receiving terminal's second
phase is expected to operate early next year after being delayed from the
end of this year.

Currently, Thailand has only one LNG receiving terminal, which is operated
by PTT in Map Ta Phut and has a capacity of 5 million tonnes. Mr Nopphadol
said last year the terminal imported 2.6 million tonnes of LNG, rising to
almost 3 million tonnes this year.

PTT shares closed on the SET yesterday at 327 baht, down eight baht, in
heavy trade worth 2.12 billion baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1135493/ptt-floating-unit-decision-
early-2017

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com