Thailand to Join US Alaska LNG Project... Considering Both Joint Development and Imports

Plans to Import Up to 5 Million Tons of LNG

Thailand is planning to participate in the Alaska liquefied natural gas (LNG) project in the United States. The Thai government intends to enter discussions with the US, considering both joint development?where state-owned energy companies will participate in the project?and LNG imports.

According to Thai media outlet The Nation on May 8, the Thai government plans to join the US Alaska LNG project and import up to 5 million tons of LNG annually. The Ministry of Energy has instructed the state-owned energy companies PTT and EGCO to begin working-level negotiations with the US side. The Ministry stated that both companies have been directed to focus discussions on both joint development and LNG imports.

Prasert Sinsukprasert, Deputy Minister of Energy, said, "We are considering importing 3 to 5 million tons of LNG per year from Alaska, and the specific details will be decided in future negotiations." He added, "Participation in the Alaska LNG project is a valuable opportunity to secure a long-term supply of LNG at a reasonable price and to realize Thailand's goal of becoming an LNG hub in Asia."

In particular, Alaska is said to have an advantage over the Middle East in terms of logistics costs. He explained that while it takes 25 to 30 days to transport LNG from the Middle East to Thailand, it only takes 10 to 15 days from Alaska, which can save both time and costs.

Deputy Minister Prasert recently visited the United States and met with business officials, including Alaska Governor Mike Dunleavy, to discuss cooperation plans. This followed Governor Dunleavy's visit to Thailand in March, during which he proposed Thailand's participation in the Alaska LNG project.

Thailand's review of participation in the Alaska LNG project also aims to reduce its trade surplus with the United States. Last year, Thailand recorded a trade surplus of $45.6 billion (about 64 trillion won) with the US, placing it on the so-called "worst offenders" list. The tariff rate imposed by the US on Thailand reaches 36%. Bilateral tariff negotiations were scheduled to begin last month, but the US postponed them.