ERC: THAILAND'S ELECTRICITY SUPPLY STABLE AS LNG COSTS CLIMB

By Kenny Teng

BANGKOK, March 24 (Bernama) -- Thailand has sufficient fuel supplies for power generation despite ongoing volatility in global energy markets and rising fuel costs, the Energy Regulatory Commission (ERC) said.

ERC Secretary-General Poolpat Leesombatphiboon said the country faced no immediate risks in securing fuel for power generation and the electricity system currently remains stable.

He said Thailand’s fuel procurement for electricity generation is structured with around 70 per cent secured through short- and long-term contracts, while the remaining 30 per cent is sourced from spot liquefied natural gas (Spot LNG) purchases to manage price fluctuations.

“Domestic LNG inventories remain at a high level and are sufficient to meet demand. However, all Spot LNG procurement must be conducted through competitive pricing in accordance with regulations to ensure fairness and legal compliance,” he said in a statement on Tuesday.

He added that with Thailand entering the summer period from April to May, the electricity demand is expected to rise significantly, requiring careful management.

Poolpat added that, as ongoing geopolitical tensions in West Asia affect LNG supply and prices,  efforts are being stepped up to diversify fuel sources and maintain reasonable costs.

This he said, include increasing electricity generation from coal, hydropower and domestic natural gas in the Gulf of Thailand.

He said Thailand imports approximately six per cent of its total gas supply from Qatar, accounting for about 15 per cent of its LNG imports.

“Thailand can source LNG from the spot market and will continue to closely monitor developments while taking all necessary steps to mitigate risks and minimise potential impacts,” he added.

He emphasised that the ERC will continue to closely monitor the situation and manage LNG procurement and reserves to ensure adequate supply.

Local media reported that the ERC is set to review electricity tariffs for the May-August billing period amid a sharp rise in LNG costs driven by tensions in West Asia.

The new tariff structure will be considered at the regulator’s board meeting on Wednesday, according to the ERC.

-- BERNAMA