Siam Gas and Petrochemical planning to construct Rayong liquefied natural gas receiving terminal
Siam Gas and Petrochemical Plc (SGP), Thailand’s second largest liquefied petroleum gas (LPG) trader by volume, is gearing up for the construction of a liquefied natural gas (LNG) receiving terminal under its plan to sell natural gas to the industrial sector.
The move is in line with the government, which began liberalising LNG trade in Thailand in 2016 after the domestic market had been monopolised by PTT Plc since 2011. Officials granted shipping licences to new LNG shippers, which are allowed to rent two PTT-owned receiving terminals in Rayong for their business.
SGP plans to build the LNG receiving facility on 400 rai of land in Ban Nong Fab in Rayong’s Map Ta Phut sub-district, adjacent to PTT’s second LNG receiving terminal, said Jintana Kingkaew, deputy managing director and chief financial officer of SGP.
The company is conducting an environmental impact assessment (EIA) report and will start the construction of the 7-billion-baht receiving terminal once the EIA receives approval.
It plans to operate the facility, with a storage capacity of 80,000-100,000 tonnes, within three years.
Ms Jintana said SGP plans to sell LNG to factories located outside areas where PTT’s network of gas pipelines are built.
The company plans to target factories which want to shift from diesel and bunker oil, which cause high emissions, to cleaner fuels like natural gas.
SGP entered the LNG business in 2018 by setting up Siam LNG Co. The first shipment of LNG imports should have been completed last year, but the schedule was postponed due to the impact of the pandemic, said Ms Jintana.
The distribution of LNG will be carried out by trucks.
In the LPG segment, the firm has allocated 500 million baht in capital spending this year, mostly for the expansion of LPG storage facilities in Thailand and Malaysia, construction and the renovation of LPG refilling stations for vehicles as well as a LPG cylinder development project.
Ms Jintana expects LPG sales to grow by 15% in 2021 to 3.73 million tonnes from 3.24 million last year. This is still lower than before the pandemic in 2019, when it stood at 3.83 million tonnes.
Source: https://www.bangkokpost.com/business/2089155/sgp-planning-to-construct-rayong-receiving-terminal
