Engie signs 15-year LNG deal to supply Thai power plants

By America Hernandez

PARIS, Jan 13 - French utility Engie ENGIE.PA has signed a 15-year deal to supply liquefied natural gas to power plants in Thailand owned by Gulf Development PCL GULF.BK, the Thai company said on Tuesday.

Deliveries of up to 0.8 million metric tons a year will begin in 2028. Price details were not disclosed.

Thailand is Southeast Asia's biggest LNG importer, with demand for the fuel set to rise as the country steadily displaces coal, which still accounts for about 14% of the national electricity mix.

"This LNG procurement aligns with Thailand’s national gas supply strategy by diversifying sources of natural gas, enhancing stability in both price and supply volume, and strengthening the nation’s long-term energy security," Gulf Development CFO Yupapin Wangviwat said in a statement.

Engie did not respond immediately to a request for comment on where the LNG will be sourced.

The state-backed French company has signed long-term contracts to purchase 3.5 million tons of U.S. LNG annually beyond 2040 from NextDecade's NEXT.O Rio Grande LNG, Cheniere’s LNG.N Corpus Christi LNG and Sempra's SRE.N Port Arthur LNG.