Thailand signs first long-term US LNG deal as Cheniere strikes again

Cheniere will provide 1 million tonnes per yr (t/y) of LNG to Thailand’s PTT from its Corpus Christi export terminal within the US after the pair signed a 20-year contract beginning in 2026. Considerably, it marks the primary US liquefied pure fuel (LNG) deal agreed with PTT, Thailand’s largest state-owned, multinational vitality firm.

The deal “requires a mixture of free-on-board (FOB) and delivered ex-ship (DES) deliveries. This customised construction represents an extra evolution in Cheniere’s industrial choices tailor-made to the precise wants of LNG prospects around the globe. The acquisition worth for LNG below the SPA is listed to the Henry Hub worth, plus a set liquefaction price,” Cheniere mentioned in an announcement.

“We’re happy to enter into this 20-year SPA with a subsidiary of PTT, the state-owned oil and fuel firm of Thailand which developed, owns and operates Thailand’s first LNG import terminal, and is an vitality chief in a key, fast-growing Southeast Asian market,” mentioned Jack Fusco, Cheniere’s President and Chief Government Officer. “That is the primary direct LNG contract from a US LNG producer for PTT World LNG, and this settlement not solely displays the important want for long-term, dependable LNG provide throughout the globe, but additionally the essential function LNG has to play in powering rising economies for many years to come back,” he added.

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Auttapol Rerkpiboon, PTT’s President and Chief Government Officer mentioned “our ambition is to maneuver ahead with the longer term vitality whereas guaranteeing vitality safety. We actively interact within the LNG enterprise and goal to be a world LNG participant by managing an LNG portfolio of 9 million t/y by 2030. By the top of this yr, PTT’s LNG receiving terminals will have the ability to accommodate regasification capability as much as 19 million tons per yr with our new terminal.”

Falling home fuel provides from the Gulf of Thailand have led the Southeast Asian nation to import extra liquefied pure fuel (LNG) amid surging world costs, which has considerably weakened the nation’s vitality safety. Pure fuel is a key gas for energy technology in Thailand, because of this, the Thai individuals are going through a lot larger electrical energy payments. Furthermore, experiences recommend Thailand is liable to a gas crunch with imported LNG turning into too dear.