PTT – EGAT sign joint venture agreement for LMPT2 project to build long-term national power security
17 February 2022PTT – EGAT signed a joint venture agreement for the LNG Receiving Terminal-2 Project at Nong Fab Sub-district, Rayong Province to build long-term power security for the county and drive Thailand to become the LNG Regional Hub of ASEAN.
On February 14, 2022, Mr. Supattanapong Punmeechaow, Deputy Prime Minister and Minister of Energy chaired the signing ceremony of the joint venture agreement for the LNG Map Ta Phut Terminal-2 Project (LMPT2) located at Nong Fab Sub-district, Rayong Province between PTT Public Company Limited (PTT) and the Electricity Generating Authority of Thailand (EGAT). The agreement was signed by Mr. Auttapol Rerkpiboon, PTT President and Chief Executive Officer, and Mr. Boonyanit Wongrukmit, EGAT Governor, and was witnessed by Mr. Kulit Sombatsiri, Permanent Secretary of the Ministry of Energy, Mr. Atikom Terbsiri, PTT Chief Operating Officer – Upstream Petroleum and Gas Business Group, Mrs. Ranee Kositvanich, EGAT Deputy Governor – Fuel, and Mr. Wuttikorn Stithit, PTT Senior Executive Vice President – Gas Business Unit in the Auditorium, 2nd Floor, PTT Head Office.
Mr. Supattanapong Punmeechaow, Deputy Prime Minister and Minister of Energy revealed that the government saw an opportunity to change the infrastructure investment model to support Thailand’s natural gas procurement and transportation, and therefore assigned the country’s two main state enterprises, namely PTT and EGAT, to invest in the LNG Receiving Terminal-2 Project, or LMPT2, located at Nong Fab Sub-district, Rayong Province. The project will enhance the competitiveness of the country’s natural gas business which is in line with Thailand’s natural gas market liberalization, support LNG import to meet demands, build long-term power security for the country, and drive Thailand to become the LNG Regional Hub of ASEAN.
Mr. Auttapol Rerkpiboon, PTT President and Chief Executive Officer said that the cooperation is a historic moment between Thailand’s two main state enterprises with a mission to build power security under the supervision of the Ministry of Energy. The two organizations joined forces to implement the new LNG Receiving Terminal Project, which will help make the most of the country’s infrastructure, support government policy and strategy, increase personnel knowledge and skills, and develop energy innovations to enhance the country’s competitiveness. Moreover, both organizations will find opportunities to jointly invest in other projects in the near future, including the LNG Receiving Facilities Project in the southern region which supports natural gas transportation to Surat Thani Power Plant, in order to help maintain the efficient cooperation.
Mr. Boonyanit Wongrukmit, EGAT Governor revealed that this project was one of the projects from the government resolution. After EGAT and PTT signed the memorandum of understanding (MOU) in 2021 and performed due diligence on the project value and other details, EGAT and PTT made an agreement regarding the main terms and initial details of the joint venture in order to develop the natural gas system infrastructure efficiently, increase LNG storage providers, enhance natural gas business competitiveness which is in line with Thailand’s natural gas market liberalization, and develop the natural gas market in Thailand to be capable and secure.
This joint venture agreement between PTT and EGAT is an important step in strengthening the cooperation between the two organizations, creating trust in the country’s power security, and enhancing efficient development so that Thais can have sustainable energy along with better quality of life.