PTT, Ratch look to joint venture in LNG sector

Economy June 06, 2014 00:00

By Watcharapong Thongrung


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National oil and gas conglomerate PTT Plc is ready to join hands with Ratchaburi Electricity Generating Holding Plc (Ratch) in a liquefied natural gas business under the proviso the former builds stations for the receiving and delivering of LNG.

Pailin Chuchottaworn, president and chief executive of PTT, said more details would be provided later.

The LNG sector will increasingly gain importance given declining natural gas reserves in the Gulf of Thailand.

Currently, PTT’s LNG receiving and delivering station can handle five million tonnes per year. The second phase of the station will be able to accommodate another five million tonnes per year.

Previously, Pongdith Potchana, Ratch’s chief executive, spoke to PTT chief operating officer Surong Bulakul about direction future joint investments would take, including those involving LNG and overseas business.

Ratch, a subsidiary of the Electricity Generating Authority of Thailand, has been involved in power generation for more than 14 years while PTT is segregating its petroleum retail, infrastructure, power generation and LNG.

Another reason for Ratch’s eagerness to partner PTT is the expected advantages over competitors PTT would enjoy in the next round of independent power producer concessions.