PTT asking EPPO to amend LNG purchase agreement made with Qatar

BANGKOK, 15 May 2010 (NNT) – PTT is preparing to propose to the Energy Policy and Planning Office of Thailand (EPPO) to amend the conditions in liquefied natural gas (LNG) purchase contract in spot purchase instead of long term agreement since the cost of spot buying is lower than long term contract by 20%.

PTT Chief Executive Officer Mr Permsak Shevawattananon cited that PTT was to propose to the EPPO to amend the LNG purchase agreement made with the Qatar Gas Operating Co Ltd for a million ton. He said the amendment should be adjusted from long term to spot trading since the cost in spot market tended to decrease by 20% compared to long term purchase.

The change of trade agreement causes the PTT to adjust the management system of LNG depot. PTT will purchase LNG in spot market during the low-cost period with stock in depot. A million ton of LNG from Qatar can be received by the middle of next year after finishing depot construction.

Mr Permsak elaborated that PTT had signed a memorandum of understanding on developing biogas with the Universal Adsorbents & Chemicals Public Company Limited. The project is aimed to produce the Compressed Bio-methane Gas (CBG) as the fuel used in vehicles.