Thailand Turns to Malaysia for LNG Supply Amid Middle East Disruptions

Thailand is seeking additional LNG from Malaysia as Middle East disruptions threaten supply, prompting a shift toward alternative sources and regional gas flows.

(Reuters) — Thailand is actively seeking additional LNG supplies from Malaysia following disruptions caused by the ongoing Middle East conflict, Thai energy government officials said on April 1.

Thailand would need to diversify some of its LNG supply away from the Middle East, estimated at roughly 5% to 10%, said Watcharin Boonyarit, the Energy Ministry's deputy director general of its Energy Policy and Planning Office, on the sidelines of the Offshore Technology Conference in Kuala Lumpur.

"Roughly two to three LNG vessels arrive from the region each month," he said, adding that those shipments would need to be replaced if the crisis persists over the coming months, including through spot market purchases.

Watcharin said that discussions are underway with Petronas, though he clarified that Thailand's state-controlled energy firm PTT PCL handles supply procurement.

PTT PCL and Petronas did not immediately respond to a Reuters request for comment after office hours.

Meanwhile, Supalak Parn-anurak, the deputy director-general at the Department of Mineral Fuels of the Energy Ministry said the country has requested additional gas supplies from the Malaysia-Thailand Joint Development Area (MTJDA), a shared resource zone jointly managed by both countries.

Supalak said procurement volumes would depend on how much spare capacity is available from Malaysia.