April 1, 2014 / 4:37 AM / 3 years ago

Thailand's PTT in talks to buy 1 mln t/y of LNG from BP

BANGKOK, April 1 (Reuters) - PTT Pcl, Thailand's top energy firm, is in talks with UK oil and gas major BP to buy 1 million tonnes per year of liquefied natural gas (LNG) from 2015, a senior executive of the Thai company said.

This is the latest in a string of efforts by Thailand to secure long-term energy supplies. LNG, gas chilled to liquid form for sea transport, is a key fuel source in the country that uses natural gas to generate almost 70 percent of its electricity.

"We have signed a preliminary agreement and are in the final stages of discussion. If successful, we should be able to import 1 million tonnes LNG a year from 2015," Nattachat Charuchinda, chief operations officer for PTT's gas business, told Reuters late on Monday.

Details about pricing and purchasing period will be decided later, Nattachat said without elaborating any further.

Thailand became the first Southeast Asian country to import LNG when it brought a 5 million tonne-per-year import terminal online in 2011. It has plans to double its total capacity.

State-controlled PTT last year signed a preliminary LNG supply agreement with Anadarko Petroleum Corp and has previously said it was also in talks to buy LNG from producers in the United States and Australia. (Reporting by Pisit Changplayngam and Oleg Vukmanovic in LONDON, Writing by Khettiya Jittapong; Editing by Himani Sarkar)

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