BANGKOK, Thailand – Deputy Prime Minister and Minister of Energy Pirapan Salirathavibhaga has unveiled a set of government measures aimed at supporting oil palm growers, stabilizing energy prices, and reducing household energy costs amid growing economic challenges. While palm oil pricing does not fall directly under the Ministry of Energy, the agency has helped absorb surplus supply by using palm oil in diesel fuel blends and is now working with the Ministry of Industry to assign a lead agency for addressing the issue more comprehensively. Officials are considering an approach similar to that used for regulating sugar and sugarcane prices.
To ease the cost of living, the Ministry is expanding access to solar energy by streamlining installation procedures for residential and commercial buildings. It is also working with manufacturers to lower the cost of solar equipment such as inverters. Through the Energy Conservation Promotion Fund, financial support will be provided to farmers for solar-powered water pumps, helping to reduce agricultural operating costs.
The Ministry is also preparing legislation to regulate oil pricing to ensure that retail fuel prices more accurately reflect real market costs. It is, at the same time, pursuing long-term strategies to secure energy supplies and cut electricity generation costs by expanding liquefied natural gas (LNG) imports. One option under review is LNG sourced from Alaska, which offers high reserves and shorter delivery times than many traditional suppliers.
Alaska’s North Slope contains over 40 trillion cubic feet of proven gas reserves. Exports are projected to begin by 2028, with annual volumes exceeding 20 million tons. Thailand is evaluating the possibility of importing between 2 and 5 million metric tons per year, depending on pricing and the outcome of negotiations.
Shipping from Alaska could reduce delivery time to just 10 to 15 days, compared to 20 to 35 days from the Middle East. The Energy Ministry views this supply diversification as a way to stabilize electricity prices, attract international investment, and reduce reliance on any single region for energy imports. (NNT)
