BP inks liquefied natural gas deal with Thailand's PTT

Oil giant BP has signed a sale and purchase agreement for liquefied natural gas with Thailand’s PTT, a petroleum and petrochemical company, for an undisclosed fee.

Under the deal, BP will provide 1m tonnes per year of liquefied natural gas to PTT for 20 years, starting in 2017.

It will be sourced from BP’s portfolio of liquified natural gas, including the Freeport project in the US, which is has a liquefaction tolling agreement for over 4.4m metric tonnes per annum capacity and is currently under construction with production expected to begin in 2018.

Paul Reed, chief executive of BP integrated supply and trading, said: “BP is pleased to conclude this liquefied natural gas sale and purchase agreement with PTT, with whom we have a longstanding relationship.

"Thailand has become a significant liquefied natural gas market and this agreement with PTT further demonstrates our liquefied natural gas supply capability in the region.”

In addition to the US, BP is currently involved in liquified natural gas projects in Australia, United Arab Emirates, Indonesia, Egypt, Trinidad and Angola.

Shares in BP were up 0.06% to 509.20p at 0955 GMT.