PTT Targets 27 Million Tonnes of LNG Capacity as JKM Spot Breaks $27
Thailand's state energy company is moving to secure long-term supply from Canada and Mexico as Hormuz disruptions push Asian spot LNG above $27.
PTT, Thailand's state energy company, is moving to expand the country's LNG import capacity from 19 million to 27 million tonnes per year, the company announced on Wednesday (2026-09-16), with Canada and Mexico under serious evaluation as long-term supply partners. The move comes as JKM spot LNG prices sit at $27.22 per million British thermal units as of Thursday (2026-09-17), according to market data — roughly $7 above the $20.2 per million British thermal units that traders reported to Bloomberg on Thursday (2026-07-16), when renewed Hormuz tensions briefly pulled Asian prices back toward their March highs.7,6
PTT's rationale is grounded in supply chain damage that predates recent weeks. The Strait of Hormuz, which handles close to 20% of global LNG flows and more than 25% of Asia's regional supply, has been effectively disrupted since Middle East hostilities escalated this year, according to Global LNG Hub data. Thailand's gas-reliant economy, which halted LNG imports entirely after prices spiked in 2021, has now been caught exposed twice in four years.1,3,4
Damage to Qatar's liquefaction infrastructure sits at the heart of the supply loss. Around 12.8 million tonnes per annum of Qatari output has been sidelined, with recovery timelines of up to five years, according to a report from Databiztimes published on May 19, 2026. Leading energy consultancies have collectively trimmed global LNG supply forecasts by as much as 35 million tonnes per year.2
The price response in Asia has been severe. In March 2026, Asian LNG prices climbed 143%, with JKM crossing $25 per million British thermal units, the highest since the 2022/23 gas crisis, according to Global LNG Hub data. Monthly JKM price volatility hit 300% in the same period, the third highest on record. European markets faced simultaneous pressure, with ICE Endex TTF month-ahead prices averaging close to $18 per million British thermal units in March 2026, up roughly 60% from February 2026 and the highest monthly average since January 2023.1,2
By mid-July, Asian spot prices had pulled back from those peaks. But the relief was short-lived. Traders told Bloomberg that JKM spot touched $20.2 per million British thermal units on Thursday (2026-07-16), a jump of roughly 10% over the preceding week to the highest level since March 2026, as Hormuz tensions reignited. Since then, JKM has climbed further, reaching $27.22 per million British thermal units as of Thursday (2026-09-17).6,5
PTT's capacity target of 27 million tonnes annually would represent a 42% increase over the current 19 million tonne base. The company's stated goal is to grow Thailand's total LNG demand to roughly 10 million tonnes by 2030, according to the Chiang Rai Times report published on Wednesday (2026-09-16). Delivering that requires substantial capital investment in domestic infrastructure that cannot be built quickly.7
The Atlantic supply pivot toward Canada and Mexico reflects the Hormuz calculus. Geography matters: Atlantic basin cargoes require longer shipping routes to Thailand and carry additional freight costs. At current JKM levels above $27 per million British thermal units, those economics still work. At mid-$20 prices, the margins narrow for buyers locked into delivered-price contracts.7
Thailand is not alone in its scramble for alternative supply. India, Pakistan, and Bangladesh have all seen demand constrained by elevated Asian prices, according to the May 2026 Databiztimes report. The Hormuz crisis has created a buyer's dilemma: the best moment to lock in long-term supply is when spot prices are elevated and sellers are keen to commit, but it is also the most expensive moment to do so.2
NYMEX Henry Hub front-month sits at $2.89 per million British thermal units as of Thursday (2026-09-17), down 0.34% on the session, reflecting no equivalent supply anxiety in North American markets. The spread of roughly $24 against JKM makes US-origin LNG commercially attractive as feedstock for Atlantic export terminals, strengthening the case for Canada and Mexico as supply anchors. But new liquefaction and export infrastructure takes years to permit and build.7
Qatar's recovery timeline, potentially running to five years from the March 2026 damage assessment, means PTT is committing capital for capacity expansion during the sharpest phase of the disruption. Whether the company can secure sufficient term supply to reduce its spot JKM exposure before the next seasonal demand peak depends on how quickly Atlantic negotiations move from evaluation to signed contracts.2,7