The cabinet committee on government purchase has approved a proposal to purchase five cargoes of liquefied natural gas (LNG) from Singapore-based BP Singapore Pte. Ltd. and one cargo from Qatar Energy Trading LLC.
The prices set for the purchase of the six LNG cargoes are lower than the international market’s Japan-Korea Marker (JKM) index.
The proposal was approved at a meeting of the cabinet committee on government purchase held yesterday, Saturday. The Ministry of Finance announced the decision in a press release today, Sunday.
According to the press release, LNG will be purchased from BP Singapore at a price of $0.17 per million British thermal units (MMBtu) below the JKM index.
Meanwhile, a proposal to purchase an additional LNG cargo from Qatar Energy Trading LLC under a long-term contract has been approved. In this case, the price has been set at $0.10 per MMBtu below the JKM index.
Separately, at the 33rd meeting of the Cabinet Committee on Economic Affairs, the Energy and Mineral Resources Division presented a proposal to purchase LNG from JERA Global Markets Pte. Ltd. through the direct procurement method.
Under Section 68 of the Public Procurement Act, 2006, and Rule 99(2) of the Public Procurement Rules, 2025, the proposal called for direct negotiations with the company and the signing of a short-term LNG sale and purchase agreement (SPA) and a term sheet.
According to the press release, it was decided that the proposal would be presented at the next meeting after vetting by the Legislative and Parliamentary Affairs Division.