The government's plan to import more liquefied natural gas (LNG) from the US could not only ease the trade imbalance between the two countries, but also lead to a new business opportunity.
The government expects LNG purchases to be part of any compromise to ease a proposed 36% reciprocal tariff imposed by US President Donald Trump on Thai goods shipped to the US in response to Thailand's trade surplus with America.
Energy authorities expect more LNG imports to pave the way for the country to become a regional LNG trading hub.
Despite the optimistic outlook, greater LNG quantities in Thailand could also have a long-term negative impact. The Explainer will explore both sides of the issue, along with some other proposals from energy analysts to deal with Trump's draconian import tax policy.
Q: How will Thailand benefit from more LNG imports?
Additional LNG purchases could allow Thailand to become the centre of LNG trade in Southeast Asia, especially as the country prepares to build a new LNG storage facility at the Map Ta Phut deep-sea port in Rayong, and has licensed seven companies to import LNG.
The new facility, the third in Thailand, is being developed by Gulf MTP LNG Terminal Co, a joint venture in which Gulf Development, a power and telecom operator, holds a 70% stake, with 30% owned by PTT Tank Terminal, a wholly-owned subsidiary of national oil and gas conglomerate PTT Plc.
The LNG receiving terminal, with a carrying capacity of 5 million tonnes a year, is to supply gas to Gulf's power plants, including those in the independent power producer category, as well as industrial customers.
Construction is scheduled to begin in the middle of this year.
PTT operates the country's first LNG import terminal with a storage capacity of 11.5 million tonnes a year in Map Ta Phut, Rayong.
PTT co-invested with the Electricity Generating Authority of Thailand (Egat) to build a second terminal, with capacity of 7.5 million tonnes a year, in Nong Fab in the same province.
"Thailand is using less LNG storage than the combined capacity of 19 million tonnes for these two facilities," said an official at the Energy Ministry who requested anonymity.
This means Thailand has sufficient infrastructure to store more imported LNG, said the official.
If Thailand imports enough LNG for domestic consumption, the surplus may be exported. PTT has several facilities and is ready to import LNG for resale to other countries, said Finance Minister Pichai Chunhavajira.
The re-export of LNG would be a major factor in Thailand becoming a regional LNG hub, challenging Singapore's dominance, according to industry leaders.
Total demand for natural gas from business sectors in Thailand is 5,000 cubic feet a day, said Mr Pichai. Some 2,300 cubic feet of gas supply comes from domestic sources and imports from Myanmar, while the remainder is imported LNG.
A significant uptick in LNG imports from the US should lead to the deregulation of LNG exports, which are restricted by the Thai government for national energy security, said Jaturong Worawitsurawatthana, spokesperson for the Federation of Thai Industries' Energy Institute for the Industrial Sector.
According to Gulf, the annual capacity of the third LNG import terminal will be increased to 10.8 million tonnes in the future.
The terminal will enhance LNG import capacity to meet growing energy demand from the industrial and power generation sectors, in line with Thailand's economic growth, said Yupapin Wangviwat, deputy chief executive and chief financial officer at Gulf.
Gulf is among seven companies granted licences by the Energy Regulatory Commission to import LNG.
The others are PTT Global LNG Co, Egat, Electricity Generating Co, B.Grimm Power Plc, Hin Kong Power Co and Siam Cement Group.
LNG shipping was monopolised by PTT from 2011 until 2019, when Egat became the second shipper.
Q: Why would additional LNG imports cause a concern?
Economic uncertainties caused by Trump's tariff policy may result in a decline in Thai LNG demand, said the energy official.
Once the new tariff rates are applied to US trading partners, Thai exports to the US and other countries may shrink, resulting in lower production in the Thai manufacturing sector, he said.
This would reduce both electricity demand for manufacturing and LNG consumption because gas makes up 60% of the fuels used for power generation in Thailand.
If Thailand does not carefully plan for additional LNG imports, it could face a glut and problems related to overinvestment, said the official.
Trump initially planned to impose reciprocal tariffs on imports from countries on April 9, then delayed enforcement for 90 days so that countries that did not retaliate can negotiate on trade matters.
Q: Are there other measures that could please Trump?
The government can also encourage more Thai companies to invest in gas and clean energy businesses in the US, said Praipol Koomsup, an economist at Thammasat University who was a committee member under former energy minister Narongchai Akrasanee.
Some Thai energy firms operate energy businesses in the US, including Banpu Plc, Gulf Development Plc and Electricity Generating Plc.
Authorities would not be required to spend a lot of money, but only facilitate prospective Thai investors in talks with American companies and US energy regulators, said Mr Praipol.
In March of 2025, Veerapat Kiatfuengfoo, deputy energy permanent secretary, jointly announced an energy cooperation plan with Michael James, the governor of the US state of Alaska.
This scheme could lead to co-investment between Thai and US companies in LNG projects in Alaska.
