* Cargo is from U.S. Sabine Pass LNG project -source
* Cargo likely to be delivered into Europe in August -source
* PTT’s existing long-term buy contracts are priced on DES basis (Adds comment, detail)
By Jessica Jaganathan
SINGAPORE, July 3 (Reuters) - The trading arm of Thailand’s PTT has bought a liquefied natural gas (LNG) cargo on a free-on-board (FOB) basis for the first time, according to a company source, the latest sign the company is broadening its trading activity.
The spot cargo was sourced from an unnamed supplier by PTT International Trading, the Singapore-based trading arm of PTT, on an FOB basis from Cheniere Energy’s Sabine Pass LNG project in Louisiana in the United States, the source told Reuters on Wednesday.
The cargo is likely to be delivered into Europe in August, the source added, declining to be named as he was not authorised to speak with media.
PTT could not immediately be reached for comment on the matter.
PTT’s existing long-term purchase contracts are all priced on a delivered ex-ship (DES) basis.
“This cargo is the first FOB LNG cargo transacted by PTT group, who has been known as a traditional end buyer since they started importing LNG in 2011,” the source said.
The move follows PTT’s first sale of LNG last month when it delivered a cargo into India in June, and is likely part of the company’s plan to expand its trading activity after it set up an LNG trading desk in its Singapore trading office in February.
The company’s chief executive told Reuters in an interview last month that PTT is in no hurry to lock in new long-term LNG contracts as it monitors domestic gas output and the growth of renewables over the next 2-3 years.
Thailand is expected to become more reliant on LNG imports because of falling output in the Gulf of Thailand, but natural gas demand growth has slowed to about 1% or less in the past 3-4 years because of increases in solar power. (Reporting by Jessica Jaganathan; Editing by Joseph Radford)