Thailand Eyes US LNG Boost Amid Trump Tax Concerns

Finance Minister meets PTT to discuss increased American gas imports, while industry calls for export deregulation to challenge Singapore's regional dominance

 

Thailand's Finance Minister is set to hold crucial talks on Wednesday morning with the state-owned energy giant PTT in a bid to bolster liquefied natural gas (LNG) imports from the United States. 

 

The move comes as the Thai government prepares for discussions in America regarding trade policies and potential tax implications under a possible future Trump administration.

 

Deputy Prime Minister and Minister of Finance Pichai Chunhavajira will convene with representatives from PTT at the Ministry of Finance in Bangkok.

 

The primary focus of the meeting will be to iron out any potential hurdles concerning natural gas (LNG) supplies ahead of Pichai's trip to the United States with the Thailand delegation from 17th to 20th April 2025.
  

Jaturong Worawitsurawatthana , representing the Energy Institute for Industrial Sector at the Federation of Thai Industries (FTI), pointed out that Thailand currently imports around 10 million tonnes of LNG under long-term agreements.

 

Domestic consumption last year reached 11.7 million tonnes, with 2 million tonnes sourced from the US. A further 1 million tonnes of US LNG is contracted for import in 2026, already secured through forward agreements.

 

However, Thailand possesses the infrastructure to handle increased LNG imports, boasting over two receiving terminals with a total storage capacity of 19 million tonnes. Existing storage facilities have a remaining capacity of 9 million tonnes, and there's potential for an additional 8 million tonnes of storage to be developed.
  



 

Energy sector sources suggest that a significant increase in US LNG imports would necessitate a change in current policy, specifically the deregulation of LNG exports, which are presently restricted by the government for national energy security.

 

Despite this, the energy industry is reportedly ready to support the government in importing more energy from the United States.

 

Industry leaders are urging the government to facilitate re-exports, allowing Thailand to import LNG and then export it onwards. This, they argue, could position Thailand as a key regional LNG hub, potentially challenging Singapore's current dominance.

 

It is understood that the deregulation of LNG taxes will be a significant point of negotiation during the Thai delegation's discussions with the United States. This forms part of a broader strategy to recalibrate and improve the trade balance between the two nations in the long term.

(2025/04/16-00:00)