Thailand Boosted 1Q LNG Imports on Hot, Dry Weather

Thailand’s LNG buyers issued a total of 14 tenders in 1Q 2024, double the number of last year’s tenders, as hotter and drier weather boosted the country’s LNG demand according to S&P Commodity Insights.

• PTT issued ten tenders seeking 27 cargoes for February-June delivery. At least 17 cargoes were awarded via the tenders, sources told S&P.
• "PTT is issuing tenders a lot more frequently than usual. We have observed the interval between each tender to have halved, reflecting more gas usage in the country," a market source said.
• Another source said that lower spot prices may have boosted LNG spot procurement.
• Platts assessed JKM May cumulative monthly average at $9.647MMBtu March 27, indicating a $1.126/MMBtu increase against the JKM April cumulative monthly average at $8.521/MMBtu.
• The Platts-assessed May Southeast Asia Marker, or SEAM, that is assessed on an outright basis to the JKM, stood $9.350/MMBtu March 27, at 17.3 cents/MMBtu discount to May JKM.
• Earlier in March, PTTEP, said it had ramped up its G1/61 project gas production to 800 MMcf/dm, which could limit LNG appetite from Q2, a source said.
• "However, the region is currently experiencing hotter and drier weather conditions, which could increase demand for gas-powered electricity in the country, potentially leading to an upside in LNG demand," the source said.
• S&P forecasts Thailand to import around 11mn tons of LNG in 2024, slightly down from 11.55mn tons in 2023.
• In January-February this year, Thailand imported 1.75mn tons of LNG, up by 27.6% year on year, with cargoes mainly coming from Australia, Qatar and Malaysia.