(Reuters) - Oman LNG has agreed to supply up to 1.6 million metric tonnes of liquefied natural gas (LNG) to France's TotalEnergies (LON:TTEF) and Thai state-owned firm PTT Pcl, the Omani state news agency reported on Wednesday.
TotalEnergies and PTT will each receive 800,000 tonnes of LNG per year, with the French firm commencing a 10-year deal in 2025 and the Thai company taking supply for nine years beginning in 2026, the news agency said.
Thailand, a net oil and gas importer, needs to increase imports of LNG to offset a steep production fall at its largest gas field and as sanctions threaten its supplies from Myanmar.
Spikes in gas prices last year Thailand to search for alternative energy sources, ranging from coal to renewables, an official from the Energy Regulatory Commission said in October.
Global gas prices rose to record levels in 2022 as Russia's supply cuts placed enormous strain on the European and global markets.
High wholesale gas prices prompted the European Union to import record amounts of LNG, drawing in volumes from top importing region Asia and causing Asian spot LNG prices to also hit historic levels last year.
Oman LNG last month inked deals with top Japanese electricity generator JERA, and trading houses Mitsui & Co and Itochu Corp, to supply 2.35 million tonnes of LNG per year, starting in 2025, for up to 10 years.