Thailand’s largest energy company, state-controlled PTT, is in advanced talks with Qatar for a 15-year liquefied natural gas (LNG) supply deal, according to Reuters.
The oil and gas conglomerate is reportedly negotiating a supply of 1 or 2 million tons per annum (mtpa), in what would be the latest in a spate of deals by Asian buyers to lock in long-term supplies.
One industry source said both sides are in “serious negotiations”, but added that a deal isn’t expected before the end of summer.
Qatar is the world’s top LNG exporter and competition for LNG has ramped up since the beginning of the war last year in Ukraine, with Europe in particular needing vast amounts to help replace piped gas from Russia that previously made up almost 40% of the continent’s imports.
Asian companies, with an appetite for long-term sales and purchase agreements, have outpaced Europe in locking in supply from Qatar’s two-phase expansion plan that will raise its liquefaction capacity to 126 million metric tons a year by 2027 from 77 million.
Traders say PTT has been seeking spot LNG cargoes this year, along with other companies in emerging Asian markets, after prices of the super-chilled fuel eased from last year’s record highs.
PTT also signed a nine-year deal with Oman LNG at the start of the year, which will see it receive 800,000 tons of LNG per year beginning 2026. (NNT)
