On April 16, 2025, PTT Exploration and Production Public Company Limited (PTTEP) announced a significant acquisition that will bolster its stake in the Sinphuhorm natural gas project. PTTEP HK Holding Limited, a subsidiary of PTTEP, has signed a Sale and Purchase Agreement (SPA) to purchase an additional 27.18% in APICO LLC from Jadestone Energy Pte. Ltd. This acquisition is valued at 35 million US dollars, with potential adjustments based on working capital and other contractual conditions.
The deal marks a strategic move for PTTEP, increasing its ownership in the Sinphuhorm project from 80.487% to a commanding 90%. The Sinphuhorm project, located in northeastern Thailand, is a key natural gas production site, which produced an average of 105 million cubic feet of natural gas per day in 2024, equivalent to 17,226 barrels of oil per day, along with 222 barrels of condensate daily.
According to PTTEP, this acquisition aligns with their mission to enhance energy security in Thailand and is expected to increase both production capacity and reserves, thereby strengthening the company’s growth trajectory.
In a related development, Mr. Pichai Chunwachira, Thailand's Deputy Prime Minister and Minister of Finance, announced plans to travel to the United States next week to discuss trade and investment policies. This visit aims to foster closer economic ties between Thailand and the US, particularly in the agricultural and energy sectors.
Mr. Pichai indicated that the US has already agreed to engage in negotiations, although specific dates for the discussions have yet to be confirmed. The talks will focus on increasing imports from the US, including agricultural products such as corn and soybeans, which are essential for Thailand's livestock feed production. The goal is to import 1 million tons of corn and 400,000 tons of soybeans by 2026, valued at approximately 50 billion and 10 billion baht, respectively.
During these negotiations, PTTEP is expected to play a significant role, particularly in discussions related to energy imports. The Thai government is looking to secure a contract for importing liquefied natural gas (LNG) from the US, targeting 1 million tons at a value of 500 million US dollars over a 15-year period. Additionally, plans are in place to import 400,000 tons of ethane, valued at 100 million US dollars.
PTTEP's proactive approach in enhancing its stake in the Sinphuhorm project, alongside the government's efforts to increase energy imports from the US, reflects a broader strategy to ensure energy security and economic stability for Thailand. The Sinphuhorm project is vital not only for meeting domestic energy needs but also for supporting the country's ambition to become a regional energy hub.
As part of its long-term strategy, PTTEP is also exploring opportunities for exporting LNG to neighboring countries, leveraging Thailand's existing infrastructure for LNG storage and distribution. This move could position Thailand as a key player in the regional energy market, further enhancing its economic prospects.
The acquisition of APICO LLC and the upcoming discussions with the US underscore PTTEP's commitment to expanding its operational footprint and securing reliable energy resources for Thailand's future. With the global energy landscape continually evolving, these strategic initiatives are crucial for maintaining competitive energy pricing and ensuring a sustainable supply of natural resources.
In conclusion, PTTEP’s acquisition of a larger stake in the Sinphuhorm project and the Thai government's efforts to enhance trade relations with the US represent significant steps towards strengthening Thailand's energy security and economic resilience. As the country navigates the complexities of the global energy market, these developments will likely play a pivotal role in shaping its future.
