LNG imports may create hub status

Thailand is expected to buy more gas from the US in any trade deal

- YUTHANA PRAIWAN

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.

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.