Model of LNG tanker is seen in front of the U.S. flag in this illustration taken May 19, 2022.

Thailand intends to boost imports of liquefied natural gas (LNG) from the United States over the next five years, Finance Minister Pichai Chunhavajira announced on Wednesday. This statement precedes a scheduled meeting with U.S. officials early next week to discuss trade matters.

An existing agreement secures 1 million tonnes of LNG, valued at $500 million, for import in 2026, part of a 15-year plan totaling 15 million tonnes. Additionally, Thailand is negotiating a new contract to import over 1 million tonnes of U.S. LNG, worth approximately $600 million, over the next five years, Pichai said.

As an LNG importer, Thailand aims to strengthen its role as a regional distributor, necessitating increased imports. “Thailand is an LNG importer and wants to be a distributor in the region and so will have to import more,” Pichai noted.

The country also plans to import 400,000 tonnes of U.S. ethane, valued at $100 million, over the next four years, according to the Finance Minister. These efforts align with Thailand’s strategy to diversify its energy imports and enhance trade relations.

Next week’s discussions with U.S. officials follow Thailand’s inclusion among Southeast Asian nations facing proposed U.S. export tariffs of 36%. To address this, the Thai government plans to increase imports of various U.S. goods, including corn, soybean meal, crude oil, ethane, LNG, vehicles, electronics, and aircraft. Additionally, Thailand is reviewing regulations on U.S. pork imports and considering imports of U.S. beef, offal, and liquor.

Thailand is also promoting increased Thai investment in the U.S. and addressing issues related to product origin claims to ensure compliance with trade regulations.

The proposed 36% tariff, announced earlier this month, could reduce Thailand’s economic growth by 1 percentage point, Pichai previously stated. Before the tariff announcement, the government aimed for 3% economic growth in 2025, following a 2.5% expansion in 2024, which lagged behind many regional counterparts.

These measures reflect Thailand’s proactive approach to maintaining robust trade ties and supporting its energy and economic objectives through strategic imports.

by Reuters