As announced by Finance Minister Pichai Chunhavajira on Wednesday, Thailand is set to increase its import of liquefied natural gas (LNG) from the United States over the next five years. This decision precedes upcoming discussions on tariffs with U.S. officials slated for early next week.
Currently, Thailand has a deal in place between involved associates in the country to propose the import of 1 million tonnes of LNG, valued at $500 million, from the U.S. next year. This marks the beginning of a 15-year strategy starting in 2026, which aims to import a total of 15 million tonnes of LNG.
Additionally, Pichai revealed plans for another agreement to secure over 1 million tonnes of U.S. LNG worth around $600 million in the coming five years.
As a nation reliant on LNG imports with aspirations to become a regional distribution hub, Thailand must increase its import volume, Pichai stated. The country also intends to source 400,000 tonnes of U.S. ethane, valued at $100 million, over a four-year span.
These developments come amidst looming talks between Thai and U.S. representatives next week. Thailand, significantly affected by U.S. President Donald Trump’s proposed 36% tariff, seeks to renegotiate terms by boosting imports from the U.S., including items like corn, soybean meal, crude oil, ethane, LNG, automobiles, electronics, and aircraft.
There are also considerations to relax rules on U.S. pork imports and potentially buy U.S. beef, offal, and liquor.
Furthermore, Thailand plans to encourage increased Thai investment in the U.S. and to address false origin claims of products re-exported to America.
Following the announcement of a 36% tariff, Pichai warned it might reduce Thailand’s economic growth by 1 percentage point. The government previously set sight for a 3% growth rate this year, building on last year’s 2.5% increase, which was notably slower compared to other countries in the region.
