Reference is made to Hin Kong Power Holding Company Limited (HKH), a joint venture between Gulf Energy Development Public Company Limited (SET: GULF) holding 49% equity stake and RATCH Group Public Company Limited (SET: RATCH) holding 51% equity stake, which was granted an LNG shipper license to import LNG in the amount of 1.4 million tonnes per annum (MTPA).
On August 24, 2023, HKH entered into a term LNG Supply Agreement with Gunvor Singapore Pte. Ltd. (Gunvor), which is a subsidiary of Gunvor Group Ltd., a leading energy commodities trading company. The agreement is for supplying and importing LNG to support electricity production for Hin Kong Power, a gas-fired IPP power project with contracted capacity of 1,400 megawatts.
Under this contract, Gunvor will supply approximately 0.5 MTPA of LNG to HKH. The first shipment will be made in March 2024 to support the electricity production of Hin Kong Power project unit 1, with a contracted capacity of 700 megawatts, which will commence operation in the same month.
The import of such LNG is in line with the country’s natural gas supply plan as it will help minimize risks in gas procurement and increase energy security for the country as well.