Bangkok: Electricity prices from May to August 2026 are poised to surge amid the LNG crisis. The global energy situation has been shaken following an explosion at a natural gas production facility in Qatar, triggering a sharp rise in global liquefied natural gas (LNG) prices. This has put direct pressure on Thailand's electricity cost structure, particularly the calculation of the automatic fuel adjustment (Ft) charge for the second period of 2026 (May-August), which is scheduled to be announced in April.
According to Thai News Agency, Mr. Poolpat Leesombatpaiboon, Secretary-General of the Energy Regulatory Commission (ERC), revealed that geopolitical factors, especially the tensions in the Middle East from the Iran-Iran conflict, have significantly increased the uncertainty in the global energy market and are beginning to affect Thailand. The "Qatar bombing" triggered a doubling of global LNG prices overnight.
The explosion at a natural gas production facility in Qatar, one of the world's major LNG exporters and a key importer for Thailand, sent ripples through the energy market. The impact was immediate, with the spot market price of LNG soaring from $11 per million BTU to $25 million per million BTU overnight. While still not as high as the crisis level of $57 per million BTU in 2022, the rapid increase reflects the fragility of the global energy market.
For Thailand, the impact is severe because its electricity production structure relies heavily on natural gas, accounting for 57% of total production capacity, with 50% being imported LNG. This means that electricity costs are linked to world market prices.
To mitigate the impact of expensive imported LNG, the Energy Regulatory Commission (ERC) has identified three urgent strategies. Firstly, plans are underway to revive the decommissioned Mae Moh coal-fired power plant, increasing its production capacity from 700 megawatts to 1,400 megawatts, with a production cost of less than 2.6 baht per unit. Secondly, efforts are being made to accelerate gas production in the Gulf of Thailand by increasing domestic natural gas production capacity by approximately 150 million cubic feet per day from the current base of approximately 2,000 million cubic feet per day. Lastly, there is a push for the massive purchase of hydropower from Laos, as it has a lower cost than fossil fuels.
Furthermore, the Energy Regulatory Commission (ERC) is promoting the use of solar energy by supporting the installation of solar rooftops, with expenses deductible from taxes up to 200,000 baht.