The Malaysian company Petroliam Nasional Berhad (Petronas) and Thailand's state-held oil and gas company PTT have proposed to jointly develop a natural gas liquefaction (LNG) facility in Malaysia. They expect this cooperation to take the form of a joint venture (JV) which would in turn enable PTT to grow its midstream business.
PTT is the sole LNG importer in Thailand and created its affiliate PTT Global LNG Company in June 2017, a global LNG trading and marketing business unit. It has been designed as a joint venture between PTT (50%) and its subsidiary PTTEP Business Center Company (50%). PTT is also looking forward to expanding Thailand's LNG import capacity and has several ongoing projects such as the expansion of the Map Ta Phut LNG import terminal, which is expected to upgrade the current 5 Mt/year capacity up to 11.5 Mt/year upon completion in 2019. PTT has received official approval for the project and is also looking for a further expansion of the terminal. Ma Ta Phut LNG is the sole LNG terminal in Thailand but the construction of a second 7.5 Mt/year LNG import terminal is also planned.
PTT also recently signed a 15-year LNG supply contract (1.2 Mt/year) with Malaysian oil and gas company Petronas, on top of existing LNG supply agreements with BP, Shell and Qatargas. A 20-year LNG supply deal was signed with BP in 2016 (1 Mt/year). The Thai company is also seeking new long-term suppliers in Australia, North America and Africa; its E&P subsidiary PTTEP holds an 8.5% stake in the Rovuma Offshore Area 1 project in Mozambique, where a 12 Mt/year LNG production plant is under consideration.
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