Thailand-based PTT has secured approval to purchase liquefied natural gas (LNG) under long-term contracts with Shell Eastern Trading (PTE) and BP Singapore.

Thailand Energy Minister Narongchai Akrasanee was quoted by Reuters as saying that PTT plans to purchase two million tons of LNG annually.

Starting from 2017, Shell Eastern and BP will supply one million tons of LNG each for up to 20 years.

Around 0.5 million tons of LNG will be supplied by Shell Eastern and 0.317 million tons by BP to the Thai energy firm in April 2016, Narongchai added.

PTT is due to secure draft approval from the Office of Attorney General following which it will sign definitive agreements with the firms.
Natural gas accounts to around 70% of total power generation in the country.

Under a previous deal with Qatar, PTT will will purchase two million tons of LNG for the next 20 years.