Gas
Thailand must reconsider its liquefied natural gas strategy
Energy analysts argue that Thailand's draft Power Development Plan relies too heavily on vulnerable liquefied natural gas imports and unproven small modular reactors.
Key points
- Thailand's draft Power Development Plan maintains heavy investment in new gas capacity despite market volatility.
- Experts suggest solar, battery storage and demand-side measures offer cheaper, more secure alternatives.
- The plan's reliance on small modular nuclear reactors introduces significant financial and operational risks.
What happened
According to the Bangkok Post, Thailand's draft Power Development Plan (PDP) continues to champion significant expansions in gas and liquefied natural gas (LNG) infrastructure, despite severe global market volatility and supply risks. Energy experts point out that this policy conflicts with national goals to reduce reliance on volatile fossil fuels and expand renewable energy sources. Although the draft outlines a pathway to increase renewables significantly by the middle of the century, its near-term roadmap locks the country into massive gas capacity additions through 2037.
The country's vulnerability to global LNG price shocks became acutely apparent when geopolitical disruptions near the Strait of Hormuz and declining domestic pipeline supplies from Myanmar forced a heavy reliance on spot market purchases. This dynamic sent fuel adjustment charges on local power bills soaring, exposing households to severe cost pressures. Critics argue that purchasing fuel for existing gas plants frequently outpaces the cost of building new decentralized solar and storage systems from scratch.
Technological and financial risks
Beyond natural gas, the draft plan places heavy bets on small modular reactors (SMRs) to expand nuclear generation capacity in the coming decades. Analysts caution that nuclear projects globally suffer from chronic delays and severe budget overruns, citing international precedents where flagship designs exceeded initial estimates exponentially. Furthermore, projected costs for SMR power in Thailand remain considerably higher than utility-scale solar alternatives currently available in the country, according to research cited in the reporting.
Why it matters
For energy investors and emerging economies across the Global South, Thailand's energy planning highlights the acute dangers of locking capital into high-cost fossil fuel infrastructure. World Bank figures show Thailand already boasts universal electricity access, standing at 100 percent in 2024, and substantial per capita power consumption at 3,080.4 kWh in 2024, yet renewables accounted for only 19.9 percent of its electricity output in 2021.
As global fuel export dynamics shift and energy security remains fragile, developing nations face a critical trilemma between cost, security and decarbonisation. The heavy reliance on imported LNG and unproven nuclear technologies risks saddling ratepayers with expensive liabilities. Policymakers across emerging markets are increasingly urged to prioritize flexible, decentralized renewable grids over expensive imported gas to insulate domestic economies from international commodity price swings, anchored by competitive benchmark pricing and robust storage solutions.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
65.3% of electricity in Bangladesh came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
