Thailand State Owned PTT in talks with Qatar for 15 Year LNG Trade Deal

Four trading sources have confirmed that PTT, the country's largest energy firm and a state-controlled entity, is in advanced negotiations with Qatar for a 15-year LNG supply agreement. According to various figures provided by the sources, the oil and gas conglomerate is negotiating a supply of 1 or 2 million tonnes per annum (mtpa), which would be the most recent in a string of agreements made by Asian buyers to secure long-term supplies.

A fifth industry source confirmed that there are "serious negotiations" taking place between the two businesses but added that no agreement is anticipated before the end of the summer. Since the start of the conflict in Ukraine last year, competition for LNG has increased, with Europe in particular needing enormous amounts to help replace piped gas from Russia, which previously accounted for almost 40% of the continent's imports. Qatar is the world's top exporter of LNG.

Asia has surpassed Europe in locking in supply from Qatar's two-phase expansion plan, which will increase its liquefaction capacity to 126 million metric tonnes annually by 2027 from 77 million. Asian companies, with an appetite for long-term sales and purchase agreements, have outpaced Europe in doing so.

The energy giant from the Gulf has been in talks with a number of other Asian customers this year and has already signed three LNG supply contracts with them, with more deals anticipated later in the year.