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British Petroleum (BP) and Thai firm, PTT Signs an Agreement for LNG Supply

BP has signed a deal to supply liquefied natural gas (LNG) to PTT, a Thai state-owned oil and gas company, which will positively impact the demand for LNG in the country.

Thailand: BP, the British energy giant has sign an agreement to supply one million tonnes of Liquefied Natural Gas annually to PTT for a period of 20 years. BP will start the supply of LNG from this year onwards and it will source it from its diverse portfolio. The freeport project in the US, which is currently under construction will also be used for sourcing LNG once it is completed by 2018. According to BP, this agreement with PTT further demonstrates LNG supply capability in the region in near future by the company.

TechSci Research finds out that LNG market is picking up fast in South Asia and Thailand is turning out to be one of the major market in the region. Moreover, growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices coupled with implementation of favorable government policies is boosting demand for LNG across the globe. Increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years.

According to released report of TechSci Research Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years.

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