Thailand is pushing ahead with a plan to import more liquefied natural gas (LNG) from the US under the Alaska LNG Project, which aims to enhance national energy security.
The move, which requires negotiations between Thai and US energy firms, is under the spotlight after the Thai government last month suggested buying more LNG from the US to ease the trade imbalance between the two countries.
Thailand's trade surplus with America is a key reason for US President Donald Trump's decision to slap a 36% reciprocal tariff on Thai imports.
"We are seeking an opportunity to invest in natural gas production to enhance national energy security and prepare Thailand to become an LNG trading hub in Southeast Asia," said Prasert Sinsukprasert, energy permanent secretary.
Gas comprises roughly 60% of the fuels used for power generation in Thailand. As the domestic gas supply is dwindling, the country needs to import more LNG.
National oil and gas conglomerate PTT Plc, state-run Electricity Generating Authority of Thailand (Egat) and Egat subsidiary Electricity Generating Plc (Egco) are working on the Alaska LNG Project, which is expected to serve as a new LNG source enabling Thailand to import several million tonnes of LNG a year.
"Alaska is a commercially viable petroleum production source that has received strong policy support from the Trump administration," said Mr Prasert. "The project has significant potential because there are more than 40 trillion cubic feet of proven gas reserves in the North Slope area."
If the negotiations between PTT, Egat and Egco with American firms are successful, the project could lead to the production and export of more than 40 million tonnes of LNG a year, he said.
LNG can be exported to Asia via the Pacific Ocean at competitive prices because the Alaska LNG Project is a large gas source with low gas production costs. It takes 10-15 days to transport LNG from Alaska to Thailand, compared with 25-30 days to carry LNG from the Middle East to the country, according to an Energy Ministry estimate.
Energy authorities are considering appropriate LNG imports from the project. The volume is expected to range from 3-5 million tonnes of LNG annually, depending on various factors such as prices. In 2022, PTT signed a long-term LNG contract with Texas-based Cheniere Energy Inc to import 1 million tonnes of LNG a year, with delivery to start in 2026.