# Thailand faces a fresh LNG squeeze as Hormuz crisis pushes prices toward US$28/MMBtu

- Link: https://www.thailand-business-news.com/markets/commodities/330458-thailand-faces-a-fresh-lng-squeeze-as-hormuz-crisis-pushes-prices-toward-us28-mmbtu
- Published: 2026-09-23T05:00:00+07:00
- Author: Nadjib Mohamed

Thailand is confronting a renewed energy-security challenge as the crisis around
the Strait of Hormuz pushes global LNG prices to about **US$28 per million British
thermal units**, close to levels seen during the Russia-Ukraine energy shock. Bangkok
is responding by accelerating domestic gas exploration, reviewing LNG procurement
strategy and seeking to diversify away from spot-market exposure.

## Key points

 * Global LNG prices have reached about **US$28/MMBtu**, close to Russia-Ukraine
   crisis levels.
 * LNG accounts for around **30% of Thailand’s electricity-generation gas supply**,
   with domestic Gulf production declining.
 * Thailand is diversifying through **long-term contracts, new suppliers and accelerated
   Andaman Sea exploration**.

The pressure is particularly significant for Thailand because imported LNG already
supplies roughly **30% of gas used for electricity generation**, while domestic 
production from mature Gulf of Thailand fields is declining. PTTEP has warned that
every **US$3/MMBtu increase in LNG prices could raise Thai electricity prices by
around 5%**, leaving manufacturers, households and power generators exposed to prolonged
international price volatility.

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The Energy Ministry is therefore looking to secure more long-term LNG contracts 
and diversify suppliers. PTT is examining sources in **Oman, North America and West
Africa**, while its trading arm has signed a long-term supply agreement with Norway’s
Equinor. Thailand is also accelerating plans for new domestic petroleum exploration,
including prospective resources in the Andaman Sea.

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The immediate objective is to reduce Thailand’s dependence on volatile spot cargoes
and create greater flexibility in the national gas portfolio. But new domestic resources
will take years to develop, meaning imported LNG will remain critical in the near
term. The crisis therefore increases the importance of power-sector reforms, renewable
generation, energy storage and demand management alongside conventional gas investment.

**Why it matters:** Energy costs are becoming a direct constraint on Thailand’s 
industrial competitiveness. A prolonged LNG shock could raise electricity prices
and production costs just as Bangkok is trying to attract data centres, electronics
and other energy-intensive investment.