Thailand’s LNG Overhang: Fixed-Payment Gas Contracts Meet Falling Demand and Cheaper Solar
According to the source, Thailand’s power sector is carrying significant fixed costs from availability payments to underutilized gas plants while new LNG supply contracts and gas capacity continue to advance. With solar and storage costs falling and terminal capacity deemed sufficient until 2037 in the draft Gas Plan 2024, the document suggests rising stranded-cost and tariff risks if contracting and regulation do not adjust.