Japan’s Tokyo Gas (TYO:9531) and Thai state-backed energy company PTT (BKK:PTT) will set up a joint venture to enter the on-site energy business involving liquefied natural gas (LNG) supply in Thailand.
The agreement was signed between Tokyo Gas Engineering Solutions Corp (TGES) and Siam Management Holdings Co. (SMH), a wholly-owned subsidiary of PTT, the Japanese company said in a statement.
The joint venture company, PTT&TGES Optec Co, will be formed in Bangkok next month with the start of operations planned for the January-March quarter of next year.
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, said Tokyo Gas.
Visualisation and automatic optimum control of equipment are also among specific features of the service, which will be offered in Thailand, where fuel conversion from liquefied petroleum gas and heavy oil to LNG will proceed rapidly, it said.
Potential customers include factories, utilities and small power producers – businesses benefiting from the Electricity Generating Authority of Thailand’s (EGAT’s) scheme to buy electricity for preferential prices for a long period from small cogeneration and other operators under certain conditions, it added.