Thailand is strategizing its energy trade approach ahead of discussions with the United States on potential tariff impacts. Deputy Prime Minister and Finance Minister Pichai Chunhavajira met with the U.S. trade team and executives from PTT Public Company Limited to prepare key initiatives in the energy sector.
The first plan confirms PTT’s existing commitment to import one million tons of LNG in 2026 under a 15-year, $500 million contract. Negotiations on pricing and freight are ongoing.
The second proposal, expected within five years, involves importing 400,000 tons of ethane worth $100 million. This move responds to declining energy resources in the Gulf of Thailand.
The third, long-term plan envisions Thailand becoming a regional hub for U.S.-sourced LNG, with PTT acting as both importer and exporter, contingent on competitive pricing.
Pichai emphasized the mutual benefits of these deals, noting the LNG import alone could raise the U.S. trade surplus with Thailand by $600 million. Other areas under review include U.S. agricultural imports for animal feed.
To address Thailand’s 72% trade surplus with the U.S., the government is considering increasing imports by $20 billion or expanding both imports and exports to stimulate economic growth.
Pichai also reaffirmed that there’s no pressure on the central bank to use foreign reserves for trade balancing. Instead, fiscal measures are preferred over currency manipulation.
Regarding protests over cattle by-product imports, he clarified they are for non-edible use in animal feed and pose no threat to local farmers.
The Thai trade delegation departs April 17, with Pichai to join later once the U.S. negotiation schedule is confirmed.
Source: NNT
