Key View:

• Thailand’s dependence on imported LNG continues to grow despite soaring global prices.
• The growing demand for LNG is being exacerbated by production declines across aging domestic fields.
• The sharp surge in global oil and gas prices is highly problematic for Thailand.

Thailand’s dependence on imported LNG continues to grow despite soaring global prices. Figures from the Energy Policy and Planning Office (EPPO) show LNG imports during the first two months of 2022 totalled 1,912mmscfd, up 26% from the same period a year ago, with February’s imports surging by 56% on an annual basis, despite spot prices in the two months being 2.6 times higher than a year ago. And while spot prices have rallied further in March and April, Thailand’s stronger appetite for LNG looks poised to be sustained for longer, as domestic production declines and domestic power generation continues to lean heavily on the fuel. In addition, growing threats to pipeline gas flows from Myanmar, coupled with accelerated lifting of domestic Covid-19 restrictions will further drive the need for LNG imports.