PTT Seeks LNG Deals Outside Middle East Amid Global Price Surge

PTT Pcl, Thailand's state-controlled energy company, is seeking to diversify its liquefied natural gas (LNG) supplies by negotiating deals in regions including the US Gulf Coast. The company aims to expand its trading business and secure more favorable contract terms, according to Chief Executive Officer Kongkrapan Intarajang.

Prior to the ongoing war in the Middle East, LNG prices were already sky-high due to disrupted flows through the Strait of Hormuz. Buyers are now seeking to reduce risk by securing contracts with exporters outside the Persian Gulf, and PTT is no exception.

Kongkrapan noted that it's 'not possible' to not buy LNG from the Middle East, but diversification is necessary. The company is targeting a fivefold increase in LNG trading volumes by 2035, when it plans to handle around 15 million tons per year. More than half of this supply will come from long-term contracts with competitive exporters.