World LNG demand grows - UK gas output declines lickety split

PTT Plc, the State owned (55%) energy company of Thailand says Thai gas demand is growing at 12% per year is exceeding supply from indigenous fields. Despite indigenous fields in the Gulf of Thailand and overland supplies from Myanmar (Burma) Thailand need to increase imports of LNG.

As a result PTT are to spend US$700 Mn. developing a kilometre-long jetty for LNG imports and 2 gas separation plants ( the 7th & 8th) which is expected to be complete by 2010. The LNG will be imported from Iran and will be used to generate electricity.

The new plant is expected to handle 5 Mn. Tonnes of LNG per year initially, which will increase to 10 Mn tonnes annually = 1,400 Mn. Cubic feet per day.

This demonstrates how worldwide demand for LNG is growing, as well as transport resources (tankers), engineering expertise and pressure on prices for production, transport and storage. This must be seen against the declining UK gas output... Centrica, UK's biggest gas supplier has just announced that output from its depleting Morecambe Bay gas field (15% of UK's peak gas demand) will fall by 20 per cent in 2006.