Global Power Synergy readies to become the sixth Thai company to apply for a licence to import liquefied natural gas (LNG)
Global Power Synergy Plc (GPSC), the power generation arm of PTT Plc, is planning to become the sixth Thai company to apply for a licence to import liquefied natural gas (LNG), currently trading at low prices in the spot market.
GPSC president and chief executive Chavalit Thippawanich said the company is preparing to submit an application letter to the Energy Regulatory Commission (ERC).
He said LNG shipping will enhance competitiveness among companies with licences newly granted by the ERC.
GPSC is also working on a plan to form a strategic partnership with PTT, as the parent firm provides the full spectrum from gas drilling to gas delivery.
“We are utilising our skills and our facilities management for cost efficiency,” Mr Chavalit said.
GPSC’s gas-fired power plants consume 2 million tonnes of gas annually. They have a combined capacity of 4,705 megawatts.
About half the electricity is traded directly with industries, mostly automotive, refining and petrochemicals, while the other half is sold to the state grid.
The company needs to buy more gas for its new power plant projects.
Once it receives approval from the ERC, it will be the sixth player in the LNG shipping business, joining PTT, the Electricity Generating Authority of Thailand (Egat), Gulf Energy Plc, Hin Kong Power Co and B.Grimm Power Plc.
The last three firms were only recently granted licences, so just PTT and Egat are doing gas imports at present.
PTT also owns a LNG receiving terminal and regasification facility, with storage capacity of 11.5 million tonnes, at Rayong’s Map Ta Phut.
The national energy firm plans to buy 8 million tonnes of LNG from the spot market for the rest of the year.
Wuttikorn Stithit, PTT’s senior executive vice-president for gas business, said cheap LNG imports from the spot market are in line with the policy of Energy Minister Sontirat Sontijirawong, who wants to relieve the economic impact of the coronavirus pandemic.
Source: https://www.bangkokpost.com/business/1932148/gpsc-readies-application-to-join-lng-trade
