Gulf LNG deal sends four cargoes to PetroChina in 2027

Gulf LNG trading is going international, with Gulf Development Plc agreeing to sell four cargoes of liquefied natural gas, about 0.3 million tonnes, to a unit of PetroChina for delivery to China in 2027. The deal was signed through Gulf's Singapore trading arm, the Bangkok Post reported on Friday.

The agreement is small next to Thailand's total gas use, but it marks a shift for one of the country's biggest power groups. Gulf has mainly bought LNG to fuel its own plants at home. Now it is also selling gas to buyers abroad.

Key terms of the Gulf LNG agreement

The sale and purchase agreement links two Singapore-based companies:

• Seller: Gulf LNG International Pte Ltd (GLNGI), Gulf's subsidiary for international LNG trading.
• Buyer: PetroChina International (Singapore) Pte Ltd, part of PetroChina International, one of China's leading energy firms.
• Volume: four cargoes totalling around 0.3 million tonnes.
• Timing and destination: deliveries during 2027, shipped to China.

Price terms were not disclosed in the report. The agreement was signed by Disathat Panyarachun, chief executive of Gulf Resources, and Zhang Yaoyu, assistant CEO of PetroChina International.

From buying gas to trading it

GLNGI sits under Gulf Resources, the group's resources arm. Its work covers LNG supply and trading, a receiving terminal and storage, vessel operations and natural gas distribution. That mix matters: a company that owns import and storage capacity, and has its own supply deals, can move cargoes between markets when prices or demand change.

Disathat said the partnership builds on Gulf's existing ties with one of China's leading energy companies. He said the aim is to combine Gulf's LNG infrastructure in Thailand and its flexibility in managing a gas portfolio with PetroChina's trading network and market access.

He also stressed that the deal will not take gas away from Thai power stations. LNG supply for Gulf's plants in Thailand "remains on track", he said, describing the agreement as a step from simply securing gas for domestic demand towards managing a business across the whole value chain.

Why it matters for Thailand's energy market

Thailand relies more and more on imported LNG as output from its own gas fields in the Gulf of Thailand has declined. Gas is the main fuel for the country's electricity, so the cost and security of LNG supply feed directly into power bills for homes, hotels and factories, including in Phuket.

Private firms such as Gulf have been allowed to import LNG alongside the state energy company PTT in recent years. Building a trading desk in Singapore, Asia's main energy trading hub, gives Gulf more tools to manage those purchases. It can sell surplus cargoes, take advantage of price gaps and build relationships with large buyers such as PetroChina.

The deal comes as the government looks for ways to cut fuel costs and reliance on imports. Prime Minister Anutin Charnvirakul has urged wider use of cheaper B20 biodiesel, while pump prices have moved in recent weeks, as covered in our report on gasohol 91 and 95 prices. Global energy markets have also been volatile, as our report on plunging oil prices showed.

What investors will watch

For shareholders, the main questions are how large Gulf's trading business can become and how much it adds to earnings. Four cargoes over a year is a modest start, and LNG trading can carry risks when prices swing sharply.

Still, the PetroChina deal gives Gulf a large, well-known counterparty for its first steps in cross-border trading. Analysts will look for further agreements, and for any update on volumes, when the company next reports results.

Gulf said the cooperation is part of its long-term growth plan and a base for working with more global partners in the future.

Image: An LNG carrier at sea, illustrating the Gulf LNG sale to PetroChina. Photo by kees torn via Wikimedia Commons, licensed under CC BY-SA 2.0.