Thailand's Hin Kong Power procures 0.2 mt/year LNG from PTT

Thailand-based Hin Kong Power made its second short-term deal by securing 0.2 mt/year of LNG -- equivalent to three cargoes -- from PTT's trading business unit, according to a market source familiar with the matter.

The deal is for deliveries over May-December 2024, with the first cargo having been delivered earlier in the month. Prices of the cargoes are linked to JKM, according to the source.

"The cargoes will be sourced from PTT's portfolio," the source said.

Hin Kong Power, a Gulf Energy Development and Ratch Group joint venture, announced its first term LNG deal in September 2023. Under the two-year JKM-linked contract that was heard, Gunvor supplies around 0.5 mt/year of LNG to Hin Kong Power on a DES basis.

The first cargo for the contract was delivered to Hin Kong Power at the Map Ta Phut Terminal 2 on Feb. 28, 2024.

Hin Kong Power owns a 1.54 GW gas-fired, combined-cycle power project that is being developed in the Ratchaburi province of Thailand. Consisting of two blocks, the power plant generates and sells 700 MW of contractual electricity to the Electricity Generating Authority of Thailand (EGAT) under a 25-year power purchase agreement.

Ratch Group announced March 1 the commercial operation of Block 1 of the power plant with an installed capacity of 770 MW. The construction of Block 2 was 96.5% completed and expected to commence commercial operation in January 2025, according to the statement.