Ukraine War Levels-NationThailand-Sept 22
The Strait of Hormuz crisis has driven LNG prices to US$28 per million British thermal units, putting pressure on Thailand’s public and private sectors to undertake a major review of their energy strategies. The response ranges from adding “flexibility” to the energy-security framework to accelerating domestic gas exploration, advancing small modular reactor technology and restructuring major energy companies. Dr Poonpat Leesombatpiboon, secretary-general of the Office of the Energy Regulatory Commission (ERC), told Bangkok Biznews that geopolitical instability was accelerating a global reassessment of energy policy. The definition of energy security needed to expand beyond ensuring adequate supplies to include adaptability and flexibility. The existing framework rests on three pillars: security, affordability and sustainability. Flexibility must now be added, with energy infrastructure designed to accommodate change, reduce reliance on a narrow range of fuels and diversify energy sources. Poonpat said uncertainty over how long the situation in the Strait of Hormuz would last was significantly affecting LNG shipments from the Middle East. Other suppliers, including the United States and Australia, therefore needed to be tapped more quickly, although alternative supplies could not be secured immediately. These factors have pushed global LNG prices to US$28 per million British thermal units, close to the initial Russia–Ukraine crisis, when prices rose from US$12 to US$25 per million British thermal units. Experts estimate that alternative producers would need at least two to three years to increase capacity. Prices could fall quickly if the situation eased soon, but a prolonged crisis could mean that prices would only begin declining in one to two years. Poonpat said the government attached the highest priority to domestic energy resources. At Gastech 2026, Thailand and Malaysia signed parallel agreements covering Block 8/B17, or the B-17 field, to accelerate gas supplies to both countries. Read more at:
