PTT to invest in a liquefied natural gas (LNG) terminal project in Myanmar

Thailand's state-owned PTT is going to invest in a liquefied natural gas (LNG) terminal project in Myanmar, according to a Reuters report.

PTT signed a contract with Thailand’s largest private power producer Ratchaburi Electricity Generating to develop a US$400 million Floating Storage and Regasification Unit in Myanmar, capable of storing 3 million tonnes in the first phase, the report said, citing Ratchaburi chief executive Pongdith Potchana.

The plans follow a memorandum of understanding between Myanmar and Thailand signed on June 15, aiming to enhance energy and electric power ties between the two countries.

Officials said after the deal that LNG is one of the items being discussed by the two countries.

Officials said Myanmar is considering importing LNG in the medium term due to growing energy demand, largely to fuel electricity generation. While Myanmar is presently a large-scale gas exporter, it has long-term contracts with China and Myanmar which means much of its production must be exported.

U Min Min Oo, a director from the Ministry of Energy, said previously thatNATURAL GAS PRODUCTION is declining in the existing fields, and the untapped blocks will take time to come online. It is likely the LNG will be used to meet rising energy demand, he said.

LNG is natural gas that is cooled to a temperature of about -160 degrees Celsius, at which point it contracts by a factor of about 600, making it much easier to transport by ship.

Myanmar’s priority is now on using new discoveries for the domestic market first rather than for export, though in the future LNG could also be exported rather than imported.

PTT aims to import natural gas from Myanmar with the LNG project. The Reuters report said about 70pc of Thailand’s electricity is generated from natural gas, of which about 20pc is from Myanmar gas fields.

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