Mr. Wuttikorn Stithit, Senior Executive Vice President, Gas Business Unit, PTT Public Co., Ltd. (PTT) explained that the spot LNG price in Asia has been on a steady rise over the past two weeks. The Asian spot LNG price on January 6 for the delivery in February 2021 was $19.98/mn Btu resulting from the colder-than-usual weather in North Asia, which has led to higher demand for natural gas. Moreover, many LNG production sites around the world have encountered problems in the production process. As a result, supply in the market is decreasing.
However, domestic natural gas users will not be affected by spot LNG price rises since PTT has secured long-term contracts. The average cost of the gas currently is less than $7/mn Btu. PTT will import spot LNG if indeed needed, and will import it at the low prices to maximize the benefits of all gas users in the country which will in turn reduce the country's electricity generation costs.
"PTT is committed to creating the country's energy security and placing the interests of the people as a priority. They can be assured that PTT will continue to strengthen energy security by procuring the energy at a suitable price," Mr. Wuttikorn said.