Thai energy giant PTT Group to pick 10% in Petronas' upstream LNG plant

Thai energy giant PTT Group to pick 10% in Petronas' upstream LNG plant

Thai energy conglomerate PTT Group said it is in talks with Petronas Group
to acquire a 10 per cent stake in the Malaysian company's liquefied natural
gas (LNG) plant.

The stake will be acquired through PTT subsidiary PTT Global LNG Co Ltd, a
50:50 joint venture between PTT Pcl and PTT Exploration and Production Pcl.

Tevin Vongvanich, president and chief executive officer of PTT Plc, told the
media today that this move would help the group secure LNG supply and reduce
vulnerability to cost fluctuations.

"We are exploring the best investment option with Petronas and expect to
have a conclusion within this year," he said. "In the future, we will look
for opportunities to form a joint venture in other LNG upstream plants as
well."

Currently, PTT is the sole importer of LNG in Thailand. It has signed
contracts to buy two million tonnes of LNG per annum from Qatar and one
million tonne each from Shell and BP Global.

Last year, PTT also secured approval from the government to buy additional
LNG from Petronas to serve rising demand in the country.

The contract for LNG trading is expected to be signed soon, he added.

A recent Platts report noted that Petronas is exploring new ways to grow its
customer base amid growing LNG production and changing buying patterns.

Petronas LNG chief executive Ezhar Yazid Jaafar said the company was
adjusting its business model in a bid to tap into emerging markets and
across the LNG value chain through partnerships.

Vongvanich pointed out that Thailand's Energy Regulatory Commission is
considering a capacity expansion of LNG warehouse from the current 10
million tonnes a year to 11.5- 15 million tonnes. A final decision could be
taken by August, he added.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com