Thailand gas grid oversupply creates economic burden

Thailand is facing an economic and energy security challenge due to a significant oversupply in its gas-fired power grid. In 2025, seven out of eleven privately owned gas plants operated at less than 10% capacity, resulting in reserve margins between 25% and 40%—well above the standard planning range of 10% to 15%.

Since 2023, EGAT and Thai ratepayers have absorbed approximately THB 159 billion in availability payments to cover the fixed costs of these idle plants. Despite this surplus, the Draft Power Development Plan 2024 proposes adding 6.3 GW of new gas capacity by 2037, a move that could increase reliance on imported fuel as domestic production declines.

This overcapacity leaves households vulnerable to liquefied natural gas (LNG) price volatility and supply disruptions. Analysts suggest that a lower-gas pathway could reduce projected gas use by 1,815 billion cubic feet.