B.Grimm LNG Ltd today signed an accord with PTT LNG Ltd to utilise the latter’s liquefied natural gas (LNG) terminal in Rayong.
The “Terminal Use Agreement,” concluded at the Centara Grand Hotel Central Plaza Ladprao, forms an integral action of B.Grimm Power PCL (BGRIM) group’s foray into the LNG business and marking the liberalisation of natural gas trading in Thailand.
B.Grimm LNG, a wholly-owned subsidiary of BGRIM, was authorised by the Energy Regulatory Commission (ERC) on 27 May 2020 as one of the seven “shippers’ of LNG supplies to the country.
The company has since then taken steps to negotiate LNG purchase contracts with the world’s leading suppliers and on 20 October 2021 sought the service of the PTT LNG Terminal’s first facility, known as LMPT-1, to process 500,000 tonnes of LNG per year for seven years from 2023 to 2029.
Dr. Harald Link, President of BGRIM, said the accord with PTT LNG signifies B.Grimm LNG’s readiness as the first private firm capable of procuring LNG for the country.
The move also marks an important step in liberalising Thailand’s natural gas business, he noted.
The first commercial shipment of LNG procured by B.Grimm LNG is expected to arrive at the LMPT-1 terminal by early 2023 and in effect kicking off the phase 2 free competition in natural gas business.
The LNG procured by B.Grimm LNG will go through the regasification process at LMPT-1 terminal to covert the gas liquid into the gaseous state before being fed into PTT’s natural gas pipeline system for delivery to end-users such as power plants and various industries.
The permission for private company to access the LNG terminal’s services is pivoting the liberalisation of Thailand’s natural gas business which has long been under state control.
