Thailand's largest utility will cut spot LNG imports and strike long-term agreements
Electricity Generating Authority of Thailand's (EGAT) governor announced on Tuesday that the EGAT is planning to halve their reliance on'spot LNG purchases', make long-term agreements with a?supplier in the Americas and increase domestic?gas production to cut costs, ensure reliable supply, and boost domestic.
Thailand has been hit hard by the U.S. - Israeli 'war on Iran', which effectively closed the Strait of Hormuz. Before the conflict, nearly a half of Thailand's oil and gas imports came from the Middle East.
Narin Phoawanich, the Governor of EGAT (Thailand's largest utility), said that the company plans to reduce the share it imports from spot LNG to 15% and to seek long-term deals with suppliers, including those in the United States.
Narin has not stated when EGAT plans to reduce its spot LNG purchases by this amount.
Despite rising prices, the Southeast Asian nation has been forced to purchase more LNG due to disruptions in the main shipping route.
The government will be focusing on long-term agreements. "We are trying to achieve balance - after the conflict began," Narin said. He added that EGAT intends to import 1,000,000 metric tons LNG a year for 'the next 20 years.
Narin said that the utility will also "build new gas-fired plants and expand renewable power capacity" as it retires its older, less efficient generator units.
(source: Reuters)
