Thailand increases fuel reserves and tries to secure LNG amid Iran Crisis

Thailand's Prime Minster Anutin Charnvirakul called a meeting on Thursday of the energy agencies as concerns grew about supply in case the war with Iran disrupted global shipping. This prompted Bangkok to "raise fuel supplies and hurry to secure energy sources."

After the meeting, Energy Minister Auttapol Rerkpiboon said that Thailand will increase its mandatory fuel reserve to 3% and not 1%.

Auttapol stated that "our reliance on Qatari LNG, which is transported through the Strait of Hormuz" was a problem.

S&P Global estimates that Thailand imports between 2.2 and 2.8 million tonnes of LNG from Qatar per year on average. However, Qatar's production has been shut down, sources reported.

He said that except for exports to Laos, Myanmar and Laos, Thailand stopped all energy exports Sunday.

Auttapol stated that the Energy Regulatory Commission (ERC),?approved a plan earlier on Thursday to procure an additional three spot LNG cargoes in order to safeguard energy security. The orders are expected to be confirmed next week. ERC stated in a press release that the cargoes will be sought for delivery between March and April.

Auttapol stated that the Thai state-owned oil company?PTT could source?supplies from multiple trading partners, and that there was no?energy crisis.

Auttapol stated that authorities would "re-evaluate the situation" in 15 days and the oil fund was able to absorb any change. (Reporting and writing by ChayutSetboonsarng, in Bangkok; Writing and editing by Emily Chow, in Singapore; Christopher Cushing & Bernadette Baum).

(source: Reuters)