Tokyo Gas and PTT have set up a joint venture to supply liquefied natural gas (LNG) in Thailand. The agreement was signed between Tokyo Gas Engineering Solutions Corp (TGES) and Siam Management Holdings (SMH), a wholly owned subsidiary of PTT.

The joint-venture company, PTT&TGES Optec, will be formed in Bangkok in November with operations planned to start in the first quarter of 2022. Tokyo Gas will hold a 49% stake. Its business will centre on offering an “advanced energy service” with a combination of LNG supply by lorry and various types of generation systems using solar, biomass and thermal power, among others.

Fuel conversion from liquefied petroleum gas and heavy oil to LNG is proceeding rapidly in Thailand, according to Tokyo Gas.  Potential customers include factories, utilities and small power producers – businesses benefiting from the Electricity Generating Authority of Thailand’s (EGAT) scheme to buy electricity at preferential prices for a long period from small co-generation firms and other operators.