Thailand turns to LNG imports amidst growing domestic power demand 

This comes as domestic gas production and piped imports from Myanmar declines. 

Thailand is turning to the international market to import liquefied natural gas (LNG) as it struggles with supply amidst declining domestic gas production, a report found. 

In a report, Fitch Solutions also linked this to the expected decrease in supply coming from Myanmar, on which Thailand had been reliant. 

“We believe that this will expose the market to higher energy prices, as LNG prices are higher than piped natural gas or compressed natural gas,” the report read. 

“This will have cascading effects into electricity prices and tariffs given the dominance of the gas-fired power sector in the power market.”

Read more: Thailand may struggle to meet energy needs with low gas production 

 In November 2022, Thailand signed a memorandum of understanding with Japan to share LNG in the event either of the markets face a shortage in electricity supply. 

“We believe that this is also part of the government's plan to avoid dependence on the emission-intensive coal-fired power sector, amid limited expansion prospects for hydropower,” Fitch also noted. 

“Non-hydropower renewables have also been ramping up, but we expect the growth effects of this sector to be realised in the latter half of the decade when more projects come online.”