Regional LNG: LNG imports not an attractive option for Thailand

Importing liquefied natural gas (LNG) to make up for a shortfall in indigenous gas supply is not an attractive option for Thailand, energy minister Prommin Lertsuridej told Platts in an interview Thursday.

Thailand, which uses 90% of the gas it produces for power generation, expects to face a shortfall in gas supply over the next couple of years due to a pipeline capacity shortage.

The Electricity Generating Authority of Thailand consumes around 2 Bcf/day of natural gas for power production, with demand expected to grow at the rate of 6-7% per annum in line with economic growth. The country's current pipeline capacity, which is at 2.65 Bcf/day, is likely to fall short, forcing EGAT to consider alternative feedstocks include imported LNG and/or fuel oil, an EGAT official had earlier said.

"Based on economics, LNG imports are not very attractive," the energy minister said. "It will take us time and money to construct the necessary infrastructure. Moreover, the gas pipeline capacity shortage is expected to last only until early 2006, when PTT's master pipeline would be completed," he added. Thailand is looking at other alternatives to meet the shortfall, he said. "We are exploring the possibility of diverting the existing pipelines. We are also considering importing more fuel oil as that will be cheaper for us than constructing an LNG import terminal," he added.(*)