Thailand Braces for LNG Supply Squeeze Amid Global Price Volatility
Thailand's energy sector is bracing for a potential LNG supply squeeze as global prices near levels seen during the Russia-Ukraine crisis. The Strait of Hormuz crisis has pushed LNG prices to US$28 per million British thermal units, putting pressure on Thailand's public and private sectors to review their energy strategies.
According to Dr. Poonpat Leesombatpiboon, secretary-general of the Office of the Energy Regulatory Commission (ERC), the situation is driving a global reassessment of energy policy. He emphasizes that energy security must expand beyond ensuring adequate supplies to include adaptability and flexibility.
The existing framework has three pillars: security, affordability, and sustainability. However, flexibility must now be added, with energy infrastructure designed to accommodate change and reduce reliance on a narrow range of fuels.