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          EGAT imported the second spot 65,000-ton LNG cargo to test a free-trade hub for natural gas and to supply to EGAT power plants. It is expected that the two imported LNG cargoes will help reduce fuel cost or Ft by 0.42 satang per unit or 500 million baht in total.

20200424E 01

          Mr. Tawatchai Jakpaisal, Deputy Governor – Fuel of Electricity Generating Authority of Thailand (EGAT) revealed that on April 21, 2020, the second 65,000-ton LNG cargo purchased by EGAT via spot market from PETRONAS LNG Co.,Ltd. arrived at PTT LNG Co., Ltd’s Map Ta Phut LNG Terminal, Rayong Province. The fuel will be delivered through PTT TSO’s piping system to Bang Pakong Power Plant Block 5, Wang Noi Power Plant Block 4, and South Bangkok Power Plant Block 4. The imported amount of LNG will be enough for power generation for 13 days from April 22-May 4, 2020 to support the power system security. After this LNG lot is used up, EGAT will report the test result of its access to the LNG market under the third-party access (TPA) to the Energy Regulatory Commission (ERC). It is expected that EGAT’s import of 2 LNG cargoes will lead to a reduction of Ft by 0.42 satang per unit or 500 million baht in total.

          For the 3-year plan of LNG import by EGAT (from 2020-2022), it will be done via spot market according to EGAT’s natural gas demand in the amount that is excessive from that specified in the natural gas purchase contract between PTT and EGAT. The EGAT’s LNG import is also in response to the Government’s policy to import LNG during its oversupply in global market with low price to promote the free trade in LNG import business in the future. The import plan was approved by EGAT Board of Directors on January 24, 2020 and is now under consideration by Ministry of Energy before submitted for approval by Committee on Energy Policy Administration and National Energy Policy Council.

          The Deputy Governor added that during the outbreak of COVID-19, EGAT and related agencies comprising of PTT LNG, PTT TSO, PETRONAS LNG and Intertek Testing Services (Thailand) must strictly follow the Government’s precautionary measures to limit its spread in accordance with the regulations and rules of Department of Disease Control, the Ministry of Public Health as well as PTT LNG’s regulations. The whole process starting from the delivery of LNG from PETRONAS LNG to Bintulu Port of Malaysia, boarding of LNG on the carrier, and LNG cargo receiving by EGAT was handled with precautionary measures against COVID-19. Meanwhile, the coordination, meetings, and document works were done via VDO conferences and e-mails in accordance with the Government’s social distancing measure.