National oil and gas conglomerate PTT Plc says it believes its liquefied natural gas (LNG) reserves can help the country generate sufficient electricity when power demand peaks during the hot season.
Gas makes up 60% of fuel used for electricity generation in Thailand.
PTT normally prepares gas reserves amounting to 6 billion cubic feet, which should be sufficient to support power production for one month if demand for electricity unexpectedly increases by between 1,400 and 1,500 megawatts a day.
This is equal to the consumption of LNG for one month if gas usage is 200 million cubic feet a day, said an official at the Energy Ministry who requested anonymity.
If gas usage exceeds the reserve level, PTT can source more LNG from the Middle East by using a prompt shipment service, the official said.
The possibility of more LNG purchases was discussed after the Energy Policy and Planning Office (Eppo) said earlier the higher level of domestic gas production for power generation may be insufficient during the hot season.
Gas production from the Erawan gas block in the Gulf of Thailand, which has been declining since 2018, is set to double in April, but the higher amount may be insufficient to meet soaring electricity demand.
Eppo based its projection on an unusually intense hot season this year, resulting from the El Niño weather phenomenon, which increases temperatures and causes drought in many countries.
Last month, the state-run Electricity Generating Authority of Thailand (Egat) also announced it plans to import more LNG to support power generation in the country.
Greater use of imported LNG should help alleviate concerns over power supply, but may lead to higher power bills as LNG prices in the global market can fluctuate.
If LNG prices increase, it would affect Egat's plan to deal with its financial problem, Egat governor Thepparat Theppitak said earlier.
The Meteorological Department expects average temperatures to be 30% higher than normal this month.
Officials said temperatures could exceed 40°C.