Thailand’s natural gas consumption will be driven by the power sector in the long term. Despite efforts to diversify energy sources, the country’s demand for natural gas remains high due to economic growth. Investments in renewable energy are increasing to reduce dependency on natural gas and combat climate change, but there are challenges in transitioning to a diversified energy portfolio. Balancing immediate energy needs with long-term sustainability goals is a critical issue for Thailand.
Key View
- The power sector will continue to drive Thailand’s natural gas consumption in 2025 and beyond.
- The petrochemical industry offers limited growth opportunities in the long term due to the lack of chemical production capacity additions.
- We anticipate additional natural gas demand from gas separation plants (GSPs) as PTTPLC plans to expand gas processing capacities.
Thailand’s natural gas demand continues to rise, reflecting the country’s growing energy requirements despite active efforts to diversify its energy sources. The nation has long relied on natural gas, primarily for electricity generation, which accounts for about two-thirds of its power production. As the economy expands, the demand for reliable and affordable energy follows suit, firmly anchoring natural gas as a crucial component of Thailand’s energy mix.
Despite this growing demand, Thailand is making significant strides toward energy diversification to ensure long-term sustainability and energy security. Investment in renewable energy sources such as solar, wind, and biomass is increasing, supported by government policies and incentives. These initiatives aim to reduce dependency on natural gas and mitigate carbon emissions, aligning with global efforts to combat climate change.
However, transitioning away from a reliance on natural gas presents considerable challenges. Infrastructure and technology changes are required to accommodate a diversified energy portfolio, and the intermittent nature of renewable energy poses reliability concerns. Balancing the immediate energy needs with long-term sustainability goals remains a critical issue for Thailand, as it strives to achieve a balanced and resilient energy landscape.
Source : Thailand’s Natural Gas Demand Keeps Growing Despite Accelerating Energy Diversification