EGAT imports low-cost LNG for Bang Pakong Power Plant to support electricity price and ease public burden
3 October 2023EGAT has continuously supported the policy on natural gas liberalization in Thailand by importing LNG to be used at Bang Pakong Power Plant with the lowest competitive price on the international market and has set the goal to import 1.2 million tons of LNG per year to reduce the cost of fuel for electricity generation, support electricity price, and ease public burden starting from October 2023.
Dr. Jiraporn Sirikum, Deputy Governor – Power Business and Acting Governor of the Electricity Generating Authority of Thailand (EGAT), revealed that EGAT has begun the short-term procurement of liquified natural gas (LNG) from 2023-2027 in the amount of 1.2 million tons per year according to the resolution of the Energy Regulatory Commission (ERC) on April 5, 2023 using competitive pricing. The LNG will be used at EGAT’s Bang Pakong Power Plant to support electricity demand in the main economic area, namely Bangkok Metropolitan Area. The first LNG cargo docked at LNG Map Ta Phut Terminal 2 in Rayong Province on October 1, 2023. For this LNG procurement, EGAT operated in accordance with the draft of the LNG procurement guideline determined by ERC which is used for natural gas suppliers and wholesalers who procure LNG to be supplied to the grid, and LNG suppliers who procure LNG to be used in off-grid power plants, industrial sector, and personal businesses. The price is also less than the standard price specified by the National Energy Policy Council (NEPC). Since 2019, EGAT has imported LNG at a reasonable price according to the world market situation and the guidelines for natural gas business liberalization (phase 1 and 2) to be used in power plants in order to lower electricity cost per unit and ease public burden.
This is a great opportunity for EGAT as an energy state enterprise responding to the government policy on electricity generation cost reduction by being one of the LNG suppliers for power plants to help enhance energy security and promote competition in the natural gas business, thus benefiting the whole country in accordance with NEPC’s policy to liberalize natural gas to third parties.