The National Energy Policy Committee (KPhCh) has approved a new framework for determining the pricing structure of natural gas in Thailand, which is expected to reduce electricity costs significantly. The announcement was made on May 6, 2025, by Deputy Minister of Energy Mr. Peerawat Saliatthawiphak during a meeting chaired by Prime Minister Ms. Paetongtarn Shinawatra.
During the meeting, KPhCh acknowledged the results of a study that focused on establishing a pricing structure for natural gas sourced from the Gulf of Thailand. This new pricing model aims to ensure that the costs of gas supplied to various sectors remain manageable while supporting the country's energy needs.
One of the key aspects of the new pricing framework involves treating natural gas separation plants as public utilities, which will allow for more effective regulation and oversight. This means that the plants will be held to standards that ensure they provide quality services while achieving reasonable returns on investment.
Currently, the sales price of natural gas leaving these separation plants is often higher than the average price of gas in the Gulf of Thailand. This discrepancy arises from the added value of C2+ products obtained from gas separation, which results in higher costs for consumers. The new pricing model proposes that the cost of gas supplied to the Pool Gas system should be lower than the average Gulf Gas price, utilizing discounts based on the value of these products.
The framework also specifies that the cost of natural gas should be aligned with its intended use across different sectors. For instance, gas used for producing liquefied petroleum gas (LPG) will be priced according to Gulf Gas rates, while the electricity sector will utilize Pool Gas pricing. This new strategy aims to resolve pricing disparities and ensure that consumers benefit from lower electricity costs without adversely affecting the petrochemical industry.
In addition to these developments, the KPhCh also reviewed reports on the operational guidelines for purchasing electricity from renewable sources. The committee noted that the costs associated with solar and wind energy have decreased, making it feasible to negotiate lower purchasing rates.
Peerawat emphasized that the adjustments in pricing would not only alleviate the financial burden on consumers but also enhance the logistics and tourism sectors within the country. The overall goal is to create a sustainable energy framework that balances affordability with the needs of various stakeholders.
Furthermore, the meeting addressed the ongoing issues related to electricity purchases from private power producers. The Electricity Generating Authority of Thailand (EGAT) has been tasked with negotiating adjustments to the electricity purchase agreements for three power plants. This move is expected to further reduce costs and streamline operations in the energy sector.
On the same day, the KPhCh also discussed the development of Khlong Toei Port, which is set to undergo significant upgrades to transform it into a smart port and entertainment hub. Deputy Minister of Transport Ms. Manaporn Charoensri announced that the government is moving forward with plans to develop the port area, which spans 520 rai, as a modern commercial center.
The Khlong Toei Port Development Plan aims to revitalize the area, which has historically served as a major logistics hub, by incorporating mixed-use developments that include shopping centers, hotels, and entertainment complexes. This initiative is expected to attract both domestic and foreign investment, enhancing the overall economic landscape of Bangkok.
Mr. Kriengkrai Chaiwongsukh, Director of the Port Authority of Thailand, highlighted that the new development will focus on efficient land management and minimal environmental impact. The project will also include a review of the previous studies conducted on the port's development, ensuring that the plans align with contemporary needs and standards.
As part of the development, a new intermodal transport system will be established to facilitate better access to the port, particularly for heavy trucks. This initiative aims to alleviate traffic congestion in the surrounding areas, which has been a significant concern for local residents.
The Khlong Toei area is home to over 15,000 residents across 26 communities. While there are currently no direct plans to develop housing in these communities, the government has committed to considering public feedback on any developments that may impact local residents.
This focus on sustainable development reflects a broader commitment to ensuring that economic growth does not come at the expense of community well-being. The government aims to create a balance between development and the needs of local populations, allowing for a more inclusive approach to urban planning.
In summary, the initiatives put forth by the KPhCh and the Ministry of Transport represent a significant shift in Thailand's approach to energy pricing and urban development. By prioritizing sustainable practices and stakeholder engagement, these efforts are poised to reshape the economic landscape of the country, fostering growth while addressing the needs of consumers and communities alike.
