By an OGJ correspondent
BANGKOK, Feb. 11 -- Thailand's PTT PLC has signed a deal to purchase 1 million tonnes/year of LNG from Qatargas Operating Co. for 10 years, with an option to increase the volume to 2 million tonnes/year.
First delivery is due to start in early 2011 to the state-controlled energy group's planned LNG receiving terminal in eastern Rayong province.
The accord came as PTT's price negotiations remained inconclusive for a 20-year supply of 3 million tonnes/year from Iran's Pars LNG project. It would start in 2011.
Talks are more than a year behind the schedule planned by both parties when they signed a basic agreement in 2006.
Such a delay has prompted PTT to hasten a deal with Qatargas to meet Thailand's rising gas demand over the next 5 years and longer, PTT executives said.
PTT also has been in talks with other LNG suppliers in Indonesia, Australia, and the Middle East, aiming to lock in supplies for its terminal's full 5 million tonne/year capacity.
The proposed LNG receiving terminal also could be expanded to double its capacity under a second phase in 2014-15 if domestic gas demand growth remains steady.
PTT is calling for bids for construction of the terminal, which involves a total investment of about $880 million and is planned to come on stream in second quarter 2011.
