Gulf Energy Considers JKM-Linked LNG Contract with 20-30 cents/MMBtu Discount

Thailand’s Gulf Energy is considering a contract for seven LNG cargoes per year for 2025-2026. Current offers are linked to JKM with a spread of 20-30 cents/MMBtu, in line with other similar Thai contracts.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Gulf Energy Considers JKM-Linked LNG Contract with 20-30 cents/MMBtu Discount

Thailand’s Gulf Energy is currently evaluating a liquefied natural gas (LNG) contract for seven cargoes per year for 2025-2026, with offers linked to the JKM (Japan-Korea Marker) and a spread of 20 to 30 cents/MMBtu compared to the reference index, according to sources close to S&P Global Commodity Insights.

The offers, valid for two weeks, will allow Gulf Energy to choose a final supplier by mid-October. The company aims to finalize this acquisition through bilateral negotiations, the sources said.

Potential Volume Expansion

Gulf Energy is considering securing more volumes than the initially planned seven cargoes if the proposed prices prove competitive. The cargoes will be delivered to the Map Ta Phut LNG Terminal and will be supplied to both Gulf Energy and Hin Kong Power, a joint venture in which Gulf Energy holds a 49% stake.

Currently, Gulf Energy has not yet begun its own LNG imports, despite obtaining a license in 2020 to import 300,000 metric tons of LNG per year. In February 2024, Gulf Energy announced the arrival of the first cargo imported by Hin Kong Power, under a contract with Gunvor, which supplies approximately 0.5 million metric tons of LNG per year on a DES (Delivered Ex Ship) basis.

Alignment with Pricing Practices

The Southeast Asia Marker (SEAM), which reflects the price of LNG cargoes delivered to Thailand, was estimated at $12.725/MMBtu for November as of October 9, with a discount of 20.5 cents/MMBtu compared to the JKM. The monthly spread between JKM and SEAM generally ranges between 20 and 30 cents/MMBtu, consistent with current practices in the Thai market.

Recent Thai agreements confirm that JKM remains the preferred pricing reference for short-term contracts in the country. In September 2023, Gunvor signed a contract with Hin Kong Power, also based on the JKM index. Similarly, the Electricity Generating Authority of Thailand (EGAT) awarded an LNG supply tender in June 2024 for the period 2025-2027 to Gunvor Singapore Pte. Ltd on a JKM basis at JKM minus 25-30 cents/MMBtu.

Another contract awarded by EGAT in 2023, covering 1.2 million metric tons of LNG for the period 2024-2027, was signed with BP and PetroChina at prices showing significant discounts compared to the JKM, according to multiple market sources.

Spot market purchases by Thai buyers are often made either on a fixed price basis or based on JKM. The Energy Policy and Planning Office, part of the Thai Ministry of Energy, has recommended that LNG procurement for short-term and spot contracts with a duration of less than five years not exceed the JKM price adjusted by a constant value, the amount of which has not yet been disclosed. However, market sources believe that this value could fluctuate according to market conditions.

Vistra Corp. finalises the purchase of seven natural gas power plants totalling 2.6 gigawatts, strengthening its presence in key US electricity markets.
Tidewater Midstream and Infrastructure has finalised the sale of its non-core Sylvan Lake site to Parallax Energy Operating for $5.5mn, with limited impact on its 2025 results.
U.S. gas deliveries to Mexico reached 7.5 billion cubic feet per day in May, driven by rising demand in the power sector and new cross-border interconnections.
The Algerian national company has restarted a key liquefaction unit in Skikda, strengthening its export capacity amid massive investment in the gas sector.
Doha and Washington warn Brussels about the consequences of EU sustainability requirements on liquefied natural gas exports, as the continent’s energy security remains under pressure.
The Volans-1X exploration well revealed a 26-metre productive zone in the Orange Basin, marking another hydrocarbon find for Azule Energy partners in 2025.
Faced with the absence of commercially viable results on the Guercif permit, Predator Oil & Gas has initiated a sale process while continuing technical evaluation of the gas potential.
According to the Oxford Institute for Energy Studies, a stable gas price of $6/MMBtu would boost global demand by 60 billion m³ in the short term and 120 billion m³ by 2035, mainly driven by Asia.
Kazakhstan’s Karachaganak gas field has reduced output by nearly one-third following an incident at a key Russian gas processing plant targeted by a Ukrainian drone strike.
Kinetiko Energy reports production levels above economic thresholds at two Mpumalanga wells, strengthening the technical viability and development potential of its liquefied natural gas project.
National Fuel Gas Company acquires CenterPoint Energy’s natural gas distribution business in Ohio, doubling the size of its regulated portfolio and expanding its footprint in the US Midwest.
The United States, Canada and Mexico together plan a 151% increase in liquefied natural gas export capacity, representing more than half of expected global additions by 2029.
European Union member states have approved the principle of a full ban on Russian natural gas imports, set to take effect by the end of 2027.
CMA CGM becomes the first international container shipping company to commission LNG-powered ships from an Indian shipyard, all to be registered under the Indian flag.
KLN strengthens its industrial project portfolio with progress on the WHPA platform in Libya, a major offshore site valued at over HK$10bn ($1.28bn), aimed at supporting regional gas supply.
US LNG producer Venture Global will report its Q3 2025 financial results before markets open, followed by a conference call for investors.
NextDecade confirmed a final investment decision for Train 5 at Rio Grande LNG, backed by full $6.7bn funding, marking its second decision in a month.
Sudan seeks partnership with Belarus to rehabilitate its energy grid amid prolonged humanitarian, economic and logistical crisis.
The Malaysian group launched three tenders to sell up to five liquefied natural gas cargoes in November and December, sourced from its Bintulu and PFLNG Dua facilities.
The South African government ends a thirteen-year freeze on shale gas, paving the way for renewed exploration in the Karoo Basin amid a national energy crisis.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.