The Energy Ministry is planning to use two units of PTT's receiving terminal for liquefied natural gas (LNG), saying the move is part of a policy to open up LNG trade.
PTT, the national oil and gas conglomerate, has held a monopoly on LNG trade in Thailand and has LNG facilities at Map Ta Phut and Nong Fab in Rayong with a combined capacity of 19 million tonnes a year.
The 7.5-million-tonne Nong Fab unit is scheduled to begin operations in 2021.
PTT is using 5.2 million tonnes for long-term purchase contracts with other traders.
"The leftover LNG capacity should be opened up for free trade," said Energy Minister Siri Jirapongphan. "PTT can generate service revenue from its LNG receiving terminal when it opens it up to other firms."
Moreover, energy policymakers recently suspended PTT's plan to purchase 2.6 million tonnes a year of LNG from Mozambique's Rovuma Area 1 until 2022. Mr Siri said they delayed this contract because they wanted to encourage new players to utilise the leftover LNG capacity of 13.8 million tonnes.
"This is the first step in freeing up LNG trade," he said. "Once PTT opens its receiving terminal in Rayong, then policymakers will use the LNG gas pipeline and floating storage re-gasification unit."
Mr Siri said the government opened up registration to new LNG importers in 2015, but there has been little interest because it is new to the Thai market and LNG demand shrank based on economic conditions.
Last year, the ministry encouraged the Electricity Generating Authority of Thailand (Egat) to be a second operator in LNG business.
Policymakers granted Egat an LNG licence to import 1.5 million tonnes a year.
Egat's first LNG cargo is expected to arrive in 2019 and be stored at PTT's receiving terminal.
Egat and Qatargas recently signed a memorandum of understanding to explore collaborative efforts for the LNG business, including the sharing of knowledge and expertise in procurement of LNG, transport and floating storage and re-gasification units.
The terms also included the possibility of Qatargas supplying LNG to Thailand.
Moreover, Egat has teamed with Siam Gas and Petrochemical Plc since last December to conduct a feasibility study of LNG business management.
SET-listed Gulf Energy Development Plc is yet another firm preparing to be an LNG operator.
Separately, policymakers yesterday approved a new calculation of the refined oil price, using the Euro 4 oil standard price as a floor.
They also approved decreasing levy collection from diesel and petrol users.
The lower levy cuts the retail price by a further 60-80 satang per litre, effective today.
