BP signs 20-year LNG supply contract with Thailand's PTT

BP signs 20-year LNG supply contract with Thailand's PTT

BP and PTT have signed a sale and purchase deal spanning 20 years where in
the British oil and gas firm will deliver nearly one million tonnes of
liquefied natural gas (LNG) yearly to the latter in Thailand.

The financial aspects of the LNG supply contract were not disclosed by the
parties.

BP's supply of LNG to PTT is set to begin next year, and sourced from its
diverse LNG portfolio that includes the Texas located Freeport LNG Project
where it has a liquefaction tolling agreement for an LNG capacity of more
than 4.4 mtpa.

BP Integrated Supply and Trading CEO Paul Reed said: "BP is pleased to
conclude this LNG sale and purchase agreement with PTT, with whom we have a
longstanding relationship. Thailand has become a significant LNG market and
this agreement with PTT further demonstrates our LNG supply capability in
the region."

Listed on the Thai Stock Exchange, PTT operates in the petroleum,
petrochemicals, power generation and coal sectors.

The Freeport LNG Project, which is also expected to provide LNG for PTT, is
currently in the development stage with production slated to begin in 2018.

Elsewhere in Africa, in October, BP agreed to buy 100% of the liquefied
natural gas (LNG) produced by the Coral South Floating LNG facility which is
expected to be installed offshore Mozambique and operated by Eni East Africa
(EEA).

The LNG purchase deal BP has entered into is also for 20 years and the
financial details of the transaction were not disclosed.

BP is expected to use the purchased LNG from the offshore Mozambique project
to meet its supply commitments worldwide.

It has presence in numerous LNG producing regions globally besides having
stakes in LNG projects across Indonesia, UAE, Australia, Egypt, Angola and
Trinidad.

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Link to Original Article:
http://transportationandstorage.energy-business-review.com/news/bp-signs-20-
year-lng-supply-contract-with-thai-based-ptt-301216-5707494

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com