Electricity Generating Plc (Egco), a subsidiary of state-run Electricity Generating Authority of Thailand (Egat), plans to venture into the liquefied natural gas (LNG) supply chain business in cooperation with Japanese energy firm JERA Co Inc.
The two companies aim to search and benefit from new business opportunities in both domestic and overseas markets.
Under their memorandum of understanding, Egco and JERA will jointly conduct market research, plan business strategy and prepare for LNG-related auctions.
Thepparat Theppitak, president of Egco, said the cooperation with JERA comes after his company was granted a LNG shipping licence from the Energy Regulatory Commission (ERC) in June last year.
Egco plans to import LNG to feed its three gas-fired power plants -- Banpong, Klongluang and Egco Cogen Replacement power plants -- all currently under construction.
Gas volume for the first shipment has yet to be finalised, though the company initially expects to import 200,380 tonnes of LNG.
LNG imports were a monopoly under national oil and gas conglomerate PTT Plc since 2011. Egat entered the market after being granted a shipping licence in 2019.
The ERC later granted licences to six other firms -- Egco, Gulf Energy Development Plc, B.Grimm Power Plc, Hinkong Co, PTT Global LNG Co and Siam Cement Group -- in line with the government's policy to open the LNG market.
JERA operates an integrated energy business in Japan with expertise in the LNG industry. It is also a major shareholder in Egco, owning a 12% stake through TEPDIA Generating B.V.
"We believe this collaboration will lead to the development of LNG business throughout national and international supply chains," said Mr Thepparat.
The cooperation also covers a feasibility study on using hydrogen and ammonia as alternative carbon-free fuels for cars as part of efforts to help build a low-carbon society.
Egco is directing its business towards cleaner energy and smarter energy technologies. The company aims to reduce carbon dioxide emissions by 10% within 2030 and achieve a carbon neutrality target by 2050.
Its renewable power facilities currently have a combined electricity generation capacity of 1,364 megawatts.