B.Grimm LNG Ltd has signed a memorandum of understanding with PTT LNG to use the latter’s liquefied natural gas terminal in Rayong province.
The Terminal Use Agreement is part of BGrim’s entry into the LNG market and marks the beginning of the liberalization of natural gas trading in Thailand. B.Grimm LNG, a wholly-owned subsidiary of B.Grimm, received Energy Regulatory Commission approval to ship LNG to the country in 2020.
Since then, the company has moved to negotiate LNG purchase contracts with the world’s leading suppliers, and in 2021, it sought the services of PTT LNG terminal’s first facility, known as LMPT-1, to process 500,000 tons of LNG per year from 2023 to 2029.
B.Grimm President Harald Link said the agreement demonstrates B.Grimm LNG’s readiness to be the country’s first private firm to procure liquefied natural gas. He also stated that the first commercial shipment of LNG procured by B.Grimm is expected to arrive at the LMPT-1 terminal in early 2023, effectively kicking off phase 2 of free competition in the natural gas industry.
According to B.Grimm CEO, LNG obtained by B.Grimm will be regasified at LMPT-1 to convert the liquid into a gaseous state before being fed into PTT’s natural gas pipeline system for delivery to power plants and various industries, according to the press release. (NNT)