Thailand’s B.Grimm Power will form a 50/50 joint venture to source and trade liquefied natural gas (LNG) with PTT Global LNG, a subsidiary of state-backed energy company PTT.
“The objectives of the cooperation are to procure and supply LNG and explore other business opportunities related to LNG value chain both domestically and internationally in order to strengthen and enhance the capability for competitiveness and business expansion of B.Grimm Power,” B.Grimm said yesterday.
PTT Global LNG is a subsidiary of PTT, which PTT and PTT Exploration and Production (PTTEP) each have 50% shareholding.
B.Grimm Power last year won a permit to import LNG into Thailand. The Energy Regulatory Commission approved the company to import 650,000 tonnes per year (t/y) of LNG. The LNG will be supplied to B.Grimm’s power plants.
Thailand has been opening its gas market in recent years with private companies allowed to directly import LNG. In July, Bangkok-listed utility Electricity Generating Public Co (Egco) was the latest to win a permit to import LNG.
Aside from Egco and B.Grimm, five other companies have LNG import and trade permits, including: state-run PTT Global LNG and Egat, as well as private players Gulf Energy Development, Hin Kong Power Holding and Siam Cement Group.
Thailand needs to import LNG to help meet rising power demand as domestic natural gas production declines.