19 hours ago
PTT, Centrica ink LNG deal
National oil and gas conglomerate PTT Plc is strengthening its position as a liquefied natural gas (LNG) trader in Southeast Asia, with its latest move paving the way to sell LNG to a British multinational energy firm.
PTT not only buys LNG under long-term purchase contracts to ensure Thailand has sufficient fuel for power generation, but it also sells the gas overseas to rack up revenue.
The company recently signed a heads of agreement for long-term LNG sales to Centrica LNG Co, scheduled for delivery in 2028, said Jaturong Worawitsurawatthana, senior executive vice-president overseeing international trading at PTT.
Known as HoA, heads of agreement serves as a roadmap for negotiations and helps parties ensure they are on the same page regarding key aspects of a deal.
Under the HoA, subsidiary PTT International Trading Pte will supply LNG to Centrica for a 10-year period across a range of destinations in Asia, based on a delivered ex-ship (DES) basis.
DES is used for pricing and delivery management, where a seller is responsible for LNG until it has been made available to a buyer on board the ship at a destination.
"With this agreement, PTT is moving to become a major LNG trader in Southeast Asia," said Mr Jaturong.
The collaboration secures PTT International Trading's first long-term LNG sales contract outside Thailand, aligning with the company's international growth ambitions.
PTT previously announced it signed a long-term purchase contract to buy 2 million tonnes of LNG from Alaska to avoid LNG price fluctuations in the spot market and address the trade imbalance with the US.
