Contributed by Mr Meesak Tanvichian, SCTL Business Development Dept

4 June 2024
Bangkok, Thailand

In a move to advance Thailand’s LNG industry, Sumitomo Corporation (SC) signed a Memorandum of Understanding (MOU) with B. Grimm LNG Limited, a subsidiary of B. Grimm Group on 9 May 2024, establishing a strategic partnership in the new business area.

Founded in 1878, B. Grimm Group is one of the oldest and largest well-established Thai conglomerates, with a variety of businesses under its umbrella for Power, Building and Industrial Systems, Lifestyle, Healthcare, Transportation and Real Estate. B. Grimm LNG is a new strategic energy vehicle under B. Grimm Group. It is one of the first private companies in Thailand that has obtained license to import liquefied natural gas (“LNG”). B. Grimm LNG plays a role in Thailand’s transition to a more liberalised natural gas market. The Government allows private companies to import, sell domestically and re-export LNG to foreign countries as well as to act as the infrastructure development window for LNG terminal.

The MOU was signed by B. Grimm Power PCL’s Senior Executive VP of Investment, Innovation and Sustainability Mr Nopadej Karnasuta and SC’s Head of Gas & Power Trading Unit Mr Jiro Miyazaki. The MOU sets forth the collaboration outline aiming to accelerate the collaboration in the field of LNG trading and LNG infrastructure development in Thailand and Southeast Asia. The signing ceremony was held at B. Grimm Group Headquarter, witnessed by SCAO Group Deputy CEO Mr Hiroshi Karashima, and B. Grimm Power PCL’s Executive VP of LNG business Mr Andrew Stuart Kirk.

While aiming for carbon neutrality by 2050, currently 70% of Thailand’s energy mix comes primarily from natural gas. It is the most prominent source of energy among Southeast Asia countries in terms of demand and policy makers see natural gas playing a crucial role throughout next Thailand’s 26-year transition to cleaner, affordable, and stable energy sources.

Gas value chain SBU is in the Energy Transformation (EX) business group and the current SBU strategy aims to advance natural gas and LNG investment as well as trading to maximise earnings and expand new businesses.