Bangkok: Iran's recent attack on energy infrastructure has caused a surge in LNG prices, reaching a three-year high of US$25.165 per million BTU. In response, Thailand's Energy Regulatory Commission (ERC) and the Electricity Generating Authority of Thailand (EGAT) are operating coal-fired power plants continuously to mitigate high electricity prices and enhance power system stability.
According to Thai News Agency, Mr. Poolpat Leesombatpaiboon, Secretary-General of the ERC, acting as spokesperson for the ERC, disclosed that during the ERC meeting No. 11/2026, the focus was on monitoring the overall energy situation and power plant management to alleviate the impact on electricity costs for the public. The ongoing Middle East conflict has caused volatility in global energy prices, especially LNG. An increase from US$12 to US$25 per million BTU could raise the fuel adjustment charge (Ft) by approximately 0.58 baht per unit.
To manage these costs, Thailand is adjusting its electricity production plan by increasing coal-fired power plant production, which costs about 0.70 baht per unit. The Mae Moh power plant in Lampang province will be crucial in this plan, with the ERC closely monitoring its operations to ensure energy balance, cost-effectiveness, and environmental protection. Despite a landslide in November 2025, EGAT aims for partial operations by July 2026 and full restoration by November 2026.
Mr. Alongkorn Phumraktham, Assistant Governor for Power Generation 2 of EGAT, confirmed that Mae Moh Power Plant is prepared to operate at full capacity as per the Ministry of Energy's policy. EGAT is also readying Mae Moh Units 9 and 10 as emergency standby power plants. A War Room has been established to monitor and manage fuel meticulously for electricity generation, aiming to ensure energy security and minimize impacts on households and the economy.
Natural gas, primarily from the Gulf of Thailand and LNG imports, accounts for 58% of Thailand's electricity generation. By 2025, about 30-35% of domestic natural gas is projected to come from LNG, with Qatar previously supplying 42.69% of all imports. However, Qatar's halt in exports has prompted Thailand to seek alternative energy sources, including hydropower and coal-fired plants.
The Iranian attack on March 19 severely damaged Qatar's LNG infrastructure, reducing production capacity by 17%. Repair work could take 3-5 years, with an estimated annual revenue loss of over US$20 billion. As a major LNG source for Asia, including Thailand, the conflict's impact on supply and prices is significant.