Thailand’s Energy Commission plans to develop free market for liquefied natural gas trade
Thailand’s Energy Regulatory Commission (ERC) plans to fully develop a free market for liquefied natural gas (LNG) in the next three years, to ensure a sufficient gas supply and fair prices.
ERC secretary-general KhomgrichTantravanich said steps are being taken to pave the way for the free market, on the condition that firms, which are granted licenses by the ERC, be required to sell gas to buyers who do not have long-term purchase agreements with national oil and gas conglomerate PTT Plc.
The licensed companies will be allowed to import LNG from the spot market first. In the next step, LNG shippers will be given permission to import gas through long-term purchase contracts, which commit buyers to paying for a fixed amount of gas, though their usage may be lower than the amount stated in the contracts.
Mr. Khomgrich said the ERC wants to see free competition under the commission’s regulations, in order to ensure reasonable electricity prices as imported LNG will feed gas-fired power plants, which produce electricity for use and sale to factories. (NNT)