Page 6 - GLNG Week 34 2022
P. 6
GLNG ASIA GLNG
Thailand looks to ease energy
woes with LNG tender
TENDERS LEADING Southeast Asian economy Thailand tenfold by 2041 to at least 30mn tpy.
is hoping to secure a long-term 1.2mn tonne per The result has been global suppliers lining
year (tpy) LNG supply as Bangkok looks to ease up to speak to Bangladeshi authorities, with the
ongoing domestic energy concerns. hugely popular government of Prime Minister
Pipeline shipments to Thailand from Myan- Sheikh Hasina last month bypassing its own ten-
mar to the west have recently proved unreliable der process to select three US-based suppliers to
due to ongoing political unrest following the move into the negotiation stage.
detention of Nobel Peace Prize winner Aung San As a safety net, should LNG deals fail to
Suu Kyi and members of the nation’s ruling party materialise, Bangladesh is reportedly looking to
by Myanmar’s military in a 2021 coup. restart older fuel oil power plants in a move that
Diminishing domestic supplies across Thai- is worrying local environmentalists.
land is an issue also causing concern. Pakistan too, known to import around 7.4mn
The result has seen Bangkok repeatedly tpy as of 2020, is now actively seeking long-term
sourcing LNG from the international spot mar- suppliers of LNG after seeing supplies previously
ket at ever increasing prices never before paid by agreed with Italian firm Eni SpA fail to arrive and
the Thai government. instead be rerouted to European customers.
In a bid to thus counter rising fuel costs across A range of severe default measures imposed
the country, the Electricity Generating Author- by Pakistan have seen relations with their Italian
ity of Thailand (EGAT) has now released the supplier sour as a result.
request for tender to secure steady LNG supplies Thai authorities meanwhile have set a Sep-
between 2026 and 2040. tember 22 date for tender proposals with EGAT
If met, the tender will supply the Thai gov- looking to agree terms and sign contracts for the
ernment in Bangkok with ample energy sup- 1.2mn tpy by December.
plies to meet projected demand until at least the The past month has seen complaints from
middle of the century, given population increase consumers across Thailand skyrocket on the
projections. back of higher power prices set by regional gov-
Reports from Thailand also suggest that ernments despite moves put in place to alleviate
Bangladesh and Pakistan in South Asia are in a higher energy costs in the coming years.
similar position in terms of LNG supply, albeit The state-owned Petroleum Authority of
with vastly different numbers in terms of popu- Thailand (PTT) just last month signed a 20-year
lation to appease. LNG purchase agreement with Texas based
Thailand currently has a population of almost Cheniere Energy for 1mn tpy, although the first
70mn, with Bangladeshis numbering 166mn shipment is not scheduled until 2026.
and Pakistan home to over 225mn. In the meantime, comments made by one
As such, while suggestions of potential sell- PTT official in the domestic Thai media that a
ing-on of LNG by larger importers in the region curb on imports of LNG is under consideration
have been put forward in the past, the current have led to increased speculation that the nation
reality of ever increasing LNG prices on the will move to increased use of diesel or fuel oil.
international market is starting to see domestic Most indicative of Thailand’s long-term
self-interest dominate. energy woes at present, though, is PTT, as the
This has seen recent figures from Bangla- only legal authority of seven licensed to ship
desh indicating that Dhaka’s current 3.5mn LNG to Thailand with any long-term LNG pur-
tpy import figure is forecast to increase almost chase agreements.
P6 www. NEWSBASE .com Week 34 26•August•2022
