Thailand aims to increase its purchases of liquefied natural gas (LNG) from the United States to 2.2 million tonnes annually within five years, from 1 million tonnes under an existing contract, according to Finance Minister Pichai Chunhavajira.
The purchases are among a number of measures the government plans to reduce its trade surplus with the US, in hopes of persuading Washington to cut the steep 36% tariff it has announced on imports from Thailand.
The national oil and gas company PTT has already signed a 15-year contract with US suppliers for 1 million tonnes of LNG per year, worth $500 million, starting in 2026. The country imports about 10 million tonnes of LNG each year, mainly from the Middle East, for power plants and other uses.
About 60% of all the natural gas used in Thailand is imported, compared with 90% of the crude oil, Mr Pichai said on Thursday.
Mr Pichai, who is also a deputy prime minister, discussed other steps Thailand would propose when it opens trade negotiations with Washington. The talks were postponed from April 23, reportedly after Washington asked Bangkok to resolve other unspecified “issues”.
In addition to measures to ease the trade imbalance with the US, Thailand will offer assurances that it will not manipulate its currency — a charge Washington levels against many countries — to gain a trade advantage.
As well, said Mr Pichai, negotiators will outline proposals to resolve the problem of exported products with fake certificates of origin. Goods to be exported to the US must have at least 40% of local content, he said.
While the Thai economy is expected to encounter temporary “air pockets” due to the impact of tariffs, aligning its tariffs more closely with those of its trade competitors will help.
“No matter how much the tariff will end up, if it is at an equal level and equal to our competitors, it will not affect us,” Mr Pichai said.
“With our proposal, we should be at a point where we would get what we want,” he added.
Mr Pichai said he had also held talks with the Chinese ambassador to Thailand to find ways to prevent a larger influx of Chinese goods.
Thailand is willing to import advanced technology from China, the minister said, adding that Chinese investors in Thailand would be urged to consider including more Thai entrepreneurs in their supply chain.
To solve the problem of Thai nominees fronting foreign-controlled businesses, authorities are reviewing foreign shareholding limits for certain businesses with an eye to possibly increasing them said Mr Pichai.
He said he would also push for 99-year-land leases for foreigners to stimulate the real state sector.