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Thailand Signs New Contracts for LNG Purchases

Increasing number of LNG purchases coupled with expansion of LNG terminals will increase the demand for Liquefied Natural Gas (LNG) in Thailand.

Thailand: Thailand has signed new contracts for purchasing LNG and for the expansion of terminals to increase imports in order to mitigate the growing demand for LNG within the country. Thailand is expected to boost its LNG imports by 75% in 2017.

PTT, an oil & gas exploration and production company based in Thailand has decided to buy pipeline gas imports from Myanmar. The expansion of its first LNG terminal near Rayong southeast of Bangkok, will be completed before this summer. Another expansion has been planned to increase the capacity to 11.5 million by 2019. Besides that PTT has also planned to open a second terminal near Rayong to add another 7.5 million to import capacity by 2022.

TechSci Research depicts that growing demand for electricity, declining domestic production of natural gas coupled with rising utilization of natural gas as feedstocks for petrochemical plants, is boosting the overall demand for LNG in Thailand. Expansion of existing LNG terminals, installation of FSRU (Floating Storage Regasification Unit) and growing demand for natural gas as an alternate fuel are major factors anticipated to positively influence the LNG market in Thailand over coming years.

According to released report of Thailand LNG Market Demand & Supply Analysis, By Region, By Application, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025, LNG market in Thailand is projected to exhibit a CAGR of 7.2% during 2016 - 2025. The country mainly imports LNG from Qatar, Australia and Indonesia. Bangkok dominated Thailand LNG market over the past few years, on account of high population density, rising number of industrial units and presence of gas based power plants in this region. Moreover, power sector accounted for highest market share in Thailand LNG market over the past few years, owing to decline in production of natural gas and rising dependence on LNG for power generation.

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