Thailand is urgently seeking to diversify its energy imports, moving away from a significant reliance on Middle Eastern sources. This push is driven by rising global oil and gas prices, with crude oil surpassing $100 per barrel and spot LNG prices nearly doubling, as well as geopolitical tensions and disruptions to traditional trade routes, such as the Strait of Hormuz. Currently, about half of Thailand's oil imports originate from the Middle East, a dependence the government aims to reduce to minimize risks from future crises.
The state-controlled energy company, PTT Pcl, is spearheading efforts to secure additional liquefied natural gas (LNG) from regions including the US Gulf Coast, Canada, and Mexico. PTT is also considering West Africa and Oman as potential sources. The company aims to increase its total LNG import capacity from 19 million to 27 million tons annually over the next three years to stabilize local power costs and reduce vulnerability to volatile spot markets, which currently supply about half of Thailand's LNG needs. Natural gas fuels over 60 percent of Thailand's electricity generation, making a stable supply crucial.
Beyond LNG, the Energy Ministry is broadening its search for crude oil from more regions, including Malaysia, the United States, and South Africa, and is preparing to build up reserves. As of September 6, 2026, the Oil Fuel Fund, which helps stabilize domestic energy prices, has a deficit of approximately $2.3 billion (83.291 billion baht). Thailand's oil reserves are currently sufficient for about 95 days. The government is committed to using mechanisms like the Oil Fuel Fund to mitigate the impact of global price swings on consumers and ensure energy stability amid uncertainties.
