The move is an acknowledgement of an increase in natural-gas demand and a projected increase in LNG imports.

Prime Minister Prayut Chan-o-cha, who chairs the supreme energy body, said energy was important for the country now and in the future, so every relevant party has to make society understand the need to increase the procurement of energy to serve demand.

He said that demand included the government’s “Thailand 4.0” scheme, which would involve several mega-projects and special economic zones.

The NEPC has acknowledged a revision of the National Gas Plan 2015 that will increase projected demand for natural gas in 2036 from 4,344 million cubic feet per day to 5,062mcfd, and LNG imports from 13.5 million tonnes to 17.4 million tonnes in 2022 and 31 million tonnes to 34 million tonnes in 2036.

The Energy Ministry cited a decline of domestic natural-gas supply as a reason for the revision, although delays of projects to build coal-fired power plants and a decision on the expired natural-gas fields in the Gulf of Thailand are also factors in the rising LNG imports.

Concerning the Electricity Generating Authority of Thailand’s delayed coal-fired power plans in Krabi province and Thepha, Songkhla province, Energy Minister Anantaporn Kanjanarat said the NEPC would have to make a decision at its meeting next month on how the country could ensure sufficient electricity supply for the Southern region.

The NEPC has given the nod to a long-term LNG supply contract that will result in PT|T purchasing 1 million tonnes per year of LNG from Petronas next year and in 2018, and 1.2 million tonnes per year thereafter.

PTT earlier inked long-term LNG contracts with BP, Shell and Qatar Liquefied Gas for a combined volume of 4 million tonnes per annum.

The NEPC also approved PTT building its second LNG receiving terminal in Rayong with a total investment of Bt38.5 billion and to study an LNG floating terminal in Myanmar.

It also approved Egat building an LNG floating terminal at an upper part of the Gulf of Thailand for Bt24.5 billion.

Energy Ministry spokesman Twarath Sutabutr said the LPG import quota would be lifted after the import liberalisation that would start next month. To encourage local refineries to produce more LPG, the ex-refinery price will be adjusted from the Saudi Armco contract price (CP) minus US$20 per tonne to the CP price.

Energy Regulatory Commis-sion spokesman Viraphol Jirapraditkul said the new gas-tariff formula would be applied to new pipeline projects as well as LNG terminal developers. Unlike the existing formula, which offers a fixed rate of return during an entire life span of a pipeline, the new formula will be revised every five years.

Meanwhile, Anantaporn explained the Cabinet’s approval this week to extend the exploration and production concession for the B8/32 block in the Gulf of Thailand to a consortium led by Chevron Offshore (Thailand) by 10 years, after 20 years of operations, without opening up the block for a bid.

He said the contract allowed the extension if the contractual terms were met.