# Thailand’s Natural Gas Reserve is Declining

- Link: https://greenlivingguy.com/2022/09/thailands-natural-gas-reserve-is-declining/
- Published: 2022-09-30T10:36:33-04:00
- Author: greenlivingguy

Renewable energy development is key for Thailand to cut its dependency on natural
gas or fossil fuel imports. Especially as gas-[based](https://greenlivingguy.com/2014/02/keystone-xl-pipeline-a-controversial-project/)
thermal power generation accounted for nearly 61.3% of the country’s annual electricity
generation in 2021. This was issued [GlobalData](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUVcJDavYetnSCVuQ23tggsZD4nG-2FGRFfo-2Bq-2BHxnXLwI0sRzR_INCA-2FPyIhC63I1FHQ-2FtwXKsMamN5mBOz6hLuWKtOi7lGFa34m3XTTCutzwz1Sll-2BARJKn3U1QJ2lMzKpz3H0ky5SH3WURazzRw5WBlPH2AoHBrP79RfTJ303E2L4GyL79-2BibYK3RaHq4zNMZcyipCrcF7Ey5YK-2B-2FlmEo2BxKDAqBrS-2B97-2FCL-2BSw7dn2v62WBfJ-2BoySFTCUlL2cZTWqHLOPM-2BpMnooLDu-2FlcnlJMAkSoT1w8Nedg1p2ofB8YaHLvku6V2UlUu5XWzlTdf8AUVqWlaPZTpvupM7la1ulTIUEtlDWVg19SIGV22Cmo3XVmEtyFHoY5-2B0WlKr2jHtlRUoS2T-2BjHBDieaJ6X89R6R43U-3D),
a leading data, and analytics company.

GlobalData’s latest report, [‘Thailand Power Market Size, Trends, Regulations, Competitive Landscape and Forecast, 2022-2035’](https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUVcJDavYetnSCVuQ23tggsZkA30AYqtDwuB4YSGsfd-2FdaCzgaoJ5VnFZpD3dAtPr86uiNCCeFU4mjVEFfgAcGM4-3D2Gp__INCA-2FPyIhC63I1FHQ-2FtwXKsMamN5mBOz6hLuWKtOi7lGFa34m3XTTCutzwz1Sll-2BARJKn3U1QJ2lMzKpz3H0ky5SH3WURazzRw5WBlPH2AoHBrP79RfTJ303E2L4GyL79-2BibYK3RaHq4zNMZcyipCrcF7Ey5YK-2B-2FlmEo2BxKDAqBrS-2B97-2FCL-2BSw7dn2v62WBfJ-2BoySFTCUlL2cZTWqHLOMkzsRIHjKwEy2cQDe-2BGAj7wjBH4F2wFXkdNOEZAo0NT4W6pJN1IFB8bjV38ihSec75K6eTtDECmuaAS07OvjncKR61US-2B0usnMdRrmTfI28U3avUTPbg66lBdwuGVXMYoQq7KKzPE6ZKkZ2C9yEFR0-3D),
reveals that depleting natural gas reserves and rising fuel import bills have become
major challenges for Thailand. The country’s natural gas reserves are expected to
decline sharply by 2030 if no new reserves are found.

![renewable energy in Thailand ](https://i0.wp.com/greenlivingguy.com/wp-content/
uploads/2022/09/jeremy-bezanger-P8Ul3NjxPOE-unsplash.jpg?resize=420%2C280&quality
=52&ssl=1)

## **Attaurrahman Ojindaram Saibasan, ****Power**** Analyst at GlobalData, comments:**

“The Erawan field, the largest gas field in Thailand, is facing a decline in output,
mainly due to a dispute between Chevron and Thailand’s state-owned oil and gas company,
PTT Exploration & Production (PTTEP), which took over the field’s operations in 
April 2022. A [lack](https://greenlivingguy.com/2017/04/5-ways-bog-mats-help-protect-the-environment/)
of innovation from PTTEP is also a growing concern since gas deposits are found 
in small pockets in the Erawan field. Moreover, hundreds of wells are required to
be drilled every year to maintain output.”

Moreover, the share of domestic gas supply in Thailand fell from 64% to 40% in the
first half of 2022. That’s due to a decline in supplies from the Gulf of Thailand.
In addition, it led to an increase in imports of liquified natural gas (LNG). The
results include high electricity [bills](https://greenlivingguy.com/2021/11/top-environmental-friendly-tricks-to-reduce-your-monthly-bills/)
for end-consumers.

In April 2022, the government reassured consumers that there would be no electricity
shortages. Especially like those seen in Vietnam or Sri Lanka. However, the Prime
Minister of Thailand ordered the country to cut its power use by 20% as a precaution.

## **Saibasan continues:**

“The plan to meet the demand through the coal-based generation and imports create
a risky scenario for the country. While environmental activists have opposed the
increased use of coal-based power, electricity imports from neighboring countries,
such as Malaysia and Laos, to meet the growing demand may not be a viable solution
for the country in the long-term given the [rise in the price](https://greenlivingguy.com/2005/11/scooter-sales-soar-as-gas-prices-rise-maybe-they-should-have-thought-about-electric-scooters-more/)
of fossil fuels.”

In its Power Development Plan (PDP), the government aims to increase the country’s
power capacity. That’s from 46,090 MW in 2017 to 77,211 MW in 2037. The country 
is aiming to generate 53% of its electricity from natural gas. Moreover, 35% from
[non-fossil fuels](https://greenlivingguy.com/2011/07/renewable-energy-continued-growth-in-2010-despite-recession/)
and 12% from coal in 2037.

According to the government, the Feed in Tariff (FiT) mechanism will add 282.92 
MW of [renewable power capacity](https://greenlivingguy.com/2025/08/chinas-renewable-energy-capacity-exceeds-expectations/).
That’s from small power producers (SPP) and very small power producers (VSPP). The
electricity generated from these plants will be used to supply to commercial users
in 2025–2026.

## **Saibasan** **concludes**:

“Although such measures are encouraging for the renewable power industry, the government
should look to bolster its renewable capacity on a large scale to overcome its dependence
on thermal power and on fossil fuel imports. The country has a developed market 
for biopower, and there are several [solar PV projects](https://greenlivingguy.com/2013/03/ja-solar-powers-israel-negev-desert-project/)
underway. The country should look to leverage on its strengths.”

[Source](https://www.globaldata.com/media/power/renewables-key-thailand-overcome-dependency-fossil-fuel-imports-says-globaldata/)

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 greenlivingguy

 The Green Living Guy, Seth Leitman is an independent power producer, a green living
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