Thailand’s B.Grimm Power said it has joined forces with a unit of state-owned oil and gas firm PTT to buy and supply LNG.
PTT Global LNG has purchased 250,000 newly issued ordinary shares in B.Grimm Power LNG JV, according to a statement by B.Grimm.
Both of the firms now have a 50 percent stake in the LNG venture.
B.Grimm says the JV would buy and supply LNG and explore other business opportunities related to the LNG value chain both domestically and internationally.
This is in order to “strengthen and enhance the capability for competitiveness and business expansion of B.Grimm Power,” the firm said.
B Grimm has last year won permission to import and trade up to 650,000 tonnes of LNG in Thailand per year from 2022. It plans to import LNG to fuel its small power plants.
The Energy Regulatory Commission has granted the license as part of a move to liberalize the country’s gas business by opening up trade to the private sector.
Thailand has last year boosted its LNG imports 12.2 percent to 5.61 million tonnes, according to GIIGNL data. The country receives LNG mainly from Qatar at PTT’s 11.5 mtpa Map Ta Phut LNG terminal.
PTT also plans to launch its Nong Fab LNG receiving terminal in Rayong, with a total capacity of 7.5 mtpa, in 2022.