On April 24, 2025, Thailand and the United States took significant steps toward enhancing energy cooperation, particularly in the liquefied natural gas (LNG) sector. This collaboration comes at a time when global demand for LNG is projected to surge, driven by economic growth in Asia and the need for cleaner energy sources.
Thailand currently sources its LNG from three main areas: 50% from the Gulf of Thailand, which is the cheapest source, 10% from Myanmar, and the remainder through imports. According to the Shell LNG Outlook 2025, global demand for LNG is expected to rise by 60% by 2040, primarily due to the growth of the Asian economy and the push for reduced greenhouse gas emissions in heavy industries and transportation.
During the meeting, Mr. Weerapat Kiatfuengfoo, Director-General of the Energy Policy and Planning Office of Thailand, welcomed Mr. Michael Dan Leavy, Senior Advisor of the Alaska State Government. The discussions centered on potential partnerships in developing LNG projects in Alaska, including gas exploration, production, and transportation.
"Thailand expressed interest in collaborating with the U.S. on the Alaska LNG project, including importing LNG to meet the rising demand for energy in the country," said Kiatfuengfoo. This partnership is seen as a crucial step toward enhancing Thailand's energy security and positioning the country as a potential LNG hub in Southeast Asia.
The collaboration is not only about energy supply; it also aims to support Thailand's goals for climate action. LNG, considered a transitional fuel, is expected to play a significant role in helping Thailand achieve carbon neutrality. The two nations will continue to discuss the details of their cooperation, focusing on sustainable energy solutions.
In recent years, Thailand has significantly increased its imports of crude oil, petrochemicals, natural gas, and LNG, amounting to $3 billion in 2025. This includes a recent agreement to import 1 million tons of LNG annually for 15 years, valued at $7.5 billion. PTT, Thailand's state-owned oil and gas company, has also invested approximately $1.2 billion in the U.S. petrochemical industry.
According to the International Energy Agency (IEA), the demand for LNG is rebounding following a drop in 2024 due to supply crises in 2022 and 2023. The natural gas market is adjusting and is expected to return to growth, with global demand reaching record highs. The IEA forecasts a 2.7% increase in gas demand in 2024, with emerging markets in Asia accounting for 40% of this growth.
As countries like Thailand look to diversify their energy sources, they are also facing challenges. The U.S. has recently increased tariffs on imports from Thailand, which has raised concerns about potential economic impacts. While some view this as a threat, others see it as an opportunity for Thailand to solidify its role in the regional energy supply chain.
"The U.S. tariffs could be seen as a pressure tactic, but they also present an opportunity for Thailand to develop its energy supply capabilities," said Kiatfuengfoo. The Thai government is keen to leverage this situation to enhance its energy independence and stability.
In addition to LNG, the discussions touched on the broader implications of U.S. trade policies on the Asian economy. Experts from ING Think have analyzed the potential impacts of President Trump's tariffs on various Asian countries, predicting that nations like Vietnam and Thailand could bear the brunt of these measures. The tariffs range from 10% to 49%, significantly affecting lower-value exports such as footwear and textiles.
Vietnam, which has a substantial trade surplus with the U.S., faces tariffs as high as 46%, while Thailand's exports to the U.S. represent about 9% of its GDP. The anticipated tariffs could reduce Thailand's GDP by approximately 3%. The automotive sector in Thailand, a crucial industry, is particularly vulnerable to these changes, especially with increasing competition from electric vehicles.
Despite these challenges, the Thai government remains optimistic about negotiating with the U.S. to mitigate the economic fallout. Vietnam has been actively seeking to negotiate exemptions for specific goods, including LNG and agricultural products. The potential for collaboration in the energy sector could provide a buffer against the impacts of tariffs.
As the energy landscape in Asia evolves, Thailand's strategic partnerships, particularly with the U.S., could play a pivotal role in shaping its future. The focus on LNG and renewable energy sources aligns with global trends toward sustainability and carbon reduction.
In conclusion, the ongoing discussions between Thailand and the U.S. regarding LNG development present a unique opportunity for Thailand to enhance its energy security while navigating the complexities of international trade. As global energy demands rise, Thailand's proactive approach may well position it as a leader in the ASEAN energy market.
