(Sept 15): Thailand’s state-controlled energy company PTT Pcl is in talks to buy more liquefied natural gas from regions including the US Gulf Coast as a means to diversify supplies and expand its trading business over the next few years.

PTT would also be open to taking minority stakes in LNG export projects if that would secure the company more favourable contract terms, chief executive officer Kongkrapan Intarajang said in an interview on the sidelines of the Gastech conference in Bangkok.

“We might have to invest a little bit to secure the molecules,” he said on Tuesday.

Across Asia, energy companies are grappling with sky-high LNG prices as the ongoing war in the Middle East disrupts flows of the super-chilled fuel through the Strait of Hormuz, which used to handle a fifth of global supplies. Buyers are now seeking to reduce risk by securing contracts with exporters outside the Persian Gulf.

“I don’t think it’s possible to not buy LNG from the Middle East,” Kongkrapan said. “But you have to now learn to diversify. You have to have a lot outside of Hormuz, and also more flexible terms,” he said, adding that the company was seeking a mixture of long-term and spot cargoes.

PTT was also open to sourcing fuel from Australia, Canada and the Middle East — as long as it’s competitive, he said.

The search for new supplies is part of the Thai company’s plan for a roughly fivefold increase in LNG trading volumes by 2035, when it plans to handle around 15 million tonnes a year, Kongkrapan said. More than half of that supply would be sourced through long-term contracts, he said, from deals to be signed over the next few years.

The goal would be to have the option of bringing the LNG into Thailand or reselling it to other Asian importers if domestic demand slumps, he said.

PTT also plans to invest in growing its domestic gas production in the Gulf of Thailand. Development of its own resources, which are cheaper than imported LNG, has always been the company’s top priority, Kongkrapan said. “But at the same time, we know that we need to continue to import more LNG,” he added. “In terms of import facilities, we have to anticipate the volume and invest properly.”

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