Thailand Braces for LNG Supply Squeeze Amid Global Price Volatility

Thailand is bracing for an LNG supply squeeze as global prices near those seen during the Russia-Ukraine war. The Strait of Hormuz crisis has driven prices to US$28 per million British thermal units, up from US$12 just a few years ago.

The government is responding with a major review of its energy strategies, including adding 'flexibility' to the energy-security framework and accelerating domestic gas exploration. Dr Poonpat Leesombatpiboon, secretary-general of the Office of the Energy Regulatory Commission (ERC), said geopolitical instability is accelerating a global reassessment of energy policy.

Thailand's existing energy framework rests on three pillars: security, affordability, and sustainability. Flexibility must now be added to include adaptability and flexibility in response to changing circumstances.