Bangkok: The Ministry of Energy is preparing to sign a contract to import liquefied natural gas (LNG) from Cheniere, based in Sania, USA, as well as from sources in Alaska, under conditions of affordable prices. The new Power Development Plan (PDP) is expected to be completed this year.

According to Thai News Agency, Mr. Prasert Sinsukprasert, Permanent Secretary of the Ministry of Energy, stated that the Ministry is ready to support the government’s policy in preparing energy proposals for tariff negotiations with the United States. This initiative aims to enhance Thailand’s energy security and reduce reliance on a single energy source by importing additional LNG. Currently, Thailand imports LNG on both long-term and short-term bases, with potential increases in short-term or spot LNG imports, provided the prices remain reasonable. Discussions with several US suppliers, including Cheniere, are ongoing and may result in additional contracts. Import figures remain flexible, but they must not exceed certain amounts or result in high costs.

Progress on the new Power Development Plan, as directed by Mr. Pirapan Salirathavibhaga, Minister of Energy, is underway despite having passed feedback from all sectors in mid-2024. The Minister has compiled a list of new mining committees, expected to begin operations soon. The new PDP will continue to focus on energy security and pricing, with adjustments and improvements in various sections. Hydrogen and small modular reactors (SMR) will remain part of the plan to increase diversity. Decisions on whether to increase or decrease production capacity from the original 600 megawatts or adjust the timeline will depend on suitability and readiness. The Electricity Generating Authority of Thailand (EGAT) is prepared to pilot SMR, though private sector readiness may lead to earlier implementation.

The need to revise the plan arises from changes in foreign policy, geopolitical issues, wars, and fluctuating prices, which have deviated from previous assumptions and expectations.