Thailand's EGAT issued spot LNG tender for mid-March delivery

Thai state-owned Electricity Generating Authority of Thailand Jan. 9 issued a tender for a single cargo of LNG on a DES basis, market sources said.

The delivery window of the cargo is March 13-16. EGAT expected to close the tender Jan. 16 at 2 pm Bangkok time and award the tender on the same day, the sources said.

Confirmation notice with preferred supplier will be signed Jan. 17-21, and the deadline for submission of standby letter of credit by preferred supplier will be Jan. 22-26.

It was EGAT's first spot LNG tender in 2024. In 2023, EGAT issued three tenders for single cargoes as well as strip cargoes over periods as long as four years.

The tenders sought a December cargo, six cargoes for delivery over September to December, and 1.2 million mt for delivery over 2024-2027. The three tenders were heard awarded at discount to JKM.

According to market sources, the EGAT tender suggested price proposals be linked to the JKM but other forms may be accepted.

Thailand-based market sources cite JKM benchmark as the primary price reference used by the regulator in the process of approving spot trading and term contracts.

"Procurement of LNG with short-term contracts and spot contracts with a duration of less than five years must not exceed the JKM price adjusted with a constant value," the Energy Policy and Planning Office (EPPO), part of the ministry of energy, says. The constant value is not disclosed but is believed to be correlated to market conditions.

Platts assessed the February JKM at $9.809/MMBtu on Jan. 9 and the February SEAM at 12.2 cents/MMBtu discount to the February JKM.