Natural gas has been central to the development of Thailand’s national policies covering energy security, economic development and reducing greenhouse gas emissions.

Gas has supplied more than 60% of Thailand’s electricity since the turn of the century, allowing the country to significantly reduce the share of oil-fired power and limit the use of coal for generation.

However, the profile of Thailand’s gas supply has been changing in recent years. Most of Thailand’s gas has historically come from offshore production in the Gulf of Thailand and Malaysia-Thaland Joint Development Area or via pipeline from Myanmar. But declining production in the Gulf of Thailand and the Gulf of Martaban, has necessitated LNG imports and more than 11.7 million tonnes were received in 2024.

Thailand’s Energy Mix

After becoming Southeast Asia’s first LNG importer in 2011, Thailand now has two operating terminals and buys natural gas from Malaysia, Indonesia, Brunei, Qatar, Australia and, increasingly, the United States. Thailand has long-term plans to become a hub for regional LNG trade and the development of a third proposed terminal at Map Taa Phut would be a step towards realising that ambition.

In the background, a focus on maximising all available resources for energy security has seen national oil and gas company PTTEP allocate a budget of more than US$3 billion to advance key overseas projects and ramp up domestic exploration and appraisal well drilling.

Electricity Production

Thailand's energy & climate goals in brief

  • Gas provides more than 60% of electricity.
  • Domestic gas production is declining
  • LNG imports have grown strongly
  • Target of net zero by 2050
  • Strong potential for CCS

Natural Gas Production & Imports

Thailand’s future gas needs – from domestic production or LNG – will depend heavily on the final form of the country’s Power Development Plan and Gas Plan, which will be part of a broader National Energy Plan.

A draft Gas Plan circulated for public comment in mid-2024 forecast a smaller role for LNG than the previous plan from 2018. The new plan would have LNG imports make up 37% of Thailand’s gas needs in 2037, as opposed to the 68% proposed by its predecessor. It is also proposed that Thailand would start working to include a 5% hydrogen mix in parts of its natural gas pipelines.

Energy Plan

Meanwhile, Thailand’s draft Power Development Plan from 2024 points towards a 2037 target of renewable energy providing 51% of electricity, with the share of gas declining to 41%, imported hydropower accounting for 15% and nuclear energy comprising 1%.

Given that Thailand produced less than 5% of its electricity from wind and solar in 2023, considerable investment will be required for renewable energy to supply more than half its power by 2037.

However, this Power Development Plan is now subject to review as a result of Thailand’s ambitions to bring forward its stated net zero timeline from 2065 to 2050.

The updated net zero target date was part of Thailand’s revised Nationally Determined Contribution (NDC), unveiled ahead of COP30 in Brazil. The new NDC outlines plans to reduce emissions by 47% by 2035, compared to 2019 levels.

Carbon Capture

Thailand does not yet have an operational carbon capture, utilisation and storage (CCUS) project at scale but the country’s potential CO2 storage capacity and ongoing plans for gas-fired power make it a good fit for the technology.

PTTEP is involved in a number of promising CCUS ventures, including Thailand’s pilot CCS project at Arthit Gas Field in the Gulf of Thailand that is expected to start operations in 2027, a study partnership with INPEX for a hub in the Northern Gulf of Thailand and a feasibility study in Thailand’s Eastern Economic Corridor. The Electricity Generation Authority of Thailand (EGAT) is also investigating the potential of CCS at Mae Moh Mine, including working with Japan’s Ministry of Economy, Trade and Industry (METI) and Japan Organization for Metals and Energy Security (JOGMEC).

Asia Natural Gas and Energy Association (ANGEA) members JGC and Mitsubishi Heavy Industries have entered into Memorandums of Understanding with Thai energy companies around the development of future CCS solutions. In collaboration with the Petroleum Institute of Thailand, ANGEA held an Energy Transition Executive Forum in Bangkok in March 2023, at which CCS was a prominent discussion point

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