Thailand Eyes Alaska Gas Pipeline Project

(Bloomberg) – Thailand has expressed interest in collaborating on a significant gas pipeline project in Alaska, which is backed by President Donald Trump. This initiative comes as the Southeast Asian nation seeks to reduce its $46 billion trade surplus with the United States ahead of tariff negotiations.

Thai officials have engaged in discussions regarding potential involvement in the $44 billion Alaska venture, which includes investments in gas exploration, production, and infrastructure. The Ministry of Energy stated that Thailand is also considering a long-term contract to import approximately 3 to 5 million tons of liquefied natural gas (LNG) from Alaska annually.

The interest in the Alaska project is aimed at increasing U.S. investments to counter the Trump administration’s proposed 36% tariff on Thai exports. Thailand plans to import more U.S. products such as natural gas and petrochemical feedstock to bridge the trade gap.

As a net energy importer, Thailand aims to secure guaranteed supplies due to declining gas reserves in the Gulf of Thailand. Currently, natural gas constitutes 58% of the country’s power generation; the domestic output covers only 60% of its daily needs.

Prasert Sinsukprasert, Thailand’s permanent-secretary at the Energy Ministry, noted the potential of the Alaska project to provide affordable electricity as demand rises from electric vehicles and data centers. Last week, a Thai delegation met with Alaska Governor Mike Dunleavy to discuss LNG trade possibilities.

Despite some interest from Asian governments, the Alaska project faces significant obstacles, having yet to secure binding investments or agreements. The proposed pipeline would span 800 miles and has been a topic of discussion for decades.

Governor Dunleavy remains optimistic, underscoring Trump’s support as crucial for the project’s completion.