PTT Plc, Thailand’s largest energy company controlled by the government, is in advanced stages of negotiations with Qatar for a 15-year deal to supply Liquefied Natural Gas (LNG).
Insider sources suggest that negotiations between the two nations have reached an advanced stage, with the Thai company reportedly negotiating for an annual supply of one to two million tonnes, according to Reuters. The parties are engaged in “serious negotiations”, but a formal agreement is not anticipated before the end of the summer.
It should be noted that Qatar is the world’s largest exporter of LNG and has seen increased competition since the onset of the war in Ukraine last year. Europe, in particular, needs substantial amounts to help replace the gas that Russia pumps through pipelines, which previously constituted approximately 40% of the continent’s gas imports.
Asian companies have shown a keen interest in securing long-term sale and purchase agreements, surpassing Europe in securing supplies from Qatar based on its two-stage expansion plan that will boost its LNG production capacity to 126 million metric tonnes annually by 2027 from the current 77 million tonnes.
This year, Qatar is in negotiations with several other Asian buyers and has so far signed three agreements with Asian buyers, with expectations for more deals to be concluded within the year.
Traders have said that PTT is looking to secure immediate LNG shipments this year, similar to other companies in emerging Asian markets, following a drop in prices from record levels last year.
Additionally, PTT signed a nine-year agreement with Oman LNG earlier this year, which will provide 80,000 tonnes annually starting from 2026.
