Oil major BP has entered into a sales and purchase agreement for liquefied natural gas (LNG) with Thai-owned PTT Public Company Limited (PTT).
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Under the agreement, BP will deliver nearly one million tonnes of LNG per year to PTT.
The agreement carries a validity of 20 years and the LNG supply will begin this year.
BP has planned to source this LNG from its vast portfolio, including the US Freeport LNG Project.
BP integrated supply and trading chief executive Paul Reed said: “BP is pleased to conclude this LNG sale and purchase agreement with PTT, with whom we have a longstanding relationship.
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By GlobalData“Thailand has become a significant LNG market and this agreement with PTT further demonstrates our LNG supply capability in the region.”
The commercial terms of the deal were not divulged by the firms.
Thailand’s state owned oil and gas company PTT is listed in the country’s stock exchange. This fully integrated national company focuses on petroleum, petrochemicals, power generation and coal.
BP is active in numerous LNG producing areas globally. It is associated with various LNG projects in Australia, UAE, Indonesia, Egypt, Trinidad and Angola.
This UK-based company has completed a liquefaction tolling agreement for more than 4.4 million tonnes per annum of LNG capacity at the Freeport LNG Project, Texas.
This project is currently in the development stage, with commercial production expected to commence from 2018.
Image: BP's Cherry Point Refinery in Washington. Photo courtesy of BP/Flickr
