Thailand Launches New Andaman Sea Gas Bidding to Ease Looming Energy Crunch
Government moves ahead with deep-water auctions as domestic gas supplies fall and demand rises
Thailand has announced a new round of deep-water exploration bidding in the Andaman Sea as part of efforts to shore up natural-gas supply ahead of a projected shortfall.
The tender, to be opened in late 2025 for Southern Andaman blocks, aims to tap reserves estimated at up to ten trillion cubic feet — potentially enough to meet domestic demand for decades and reduce reliance on volatile liquefied natural gas imports.
Energy authorities are framing the move as critical in light of declining output from mature Gulf of Thailand fields and shrinking piped imports from neighbouring regions.
Analysts warn that without fresh domestic discoveries, the nation could face gas supply gaps exceeding one billion cubic feet per day by 2028 and growing further by 2035.
The planned bidding round has already drawn interest from major regional and global energy firms, including large producers capable of investing in high-risk deep-water exploration.
Authorities have proposed a modernised, hybrid-contract model — blending concession elements with production-sharing terms — to offer better fiscal and regulatory conditions and attract serious bidders.
Officials emphasise that blocks offered in the auction will be located away from major tourist and coastal zones to minimise environmental and social impacts.
They also highlight the potential economic benefits: substantial foreign investment, job creation, local infrastructure development, and long-term energy security.
As the auction process unfolds, Thailand is betting that unlocking Andaman gas will stabilise domestic energy costs, secure supply for power generation and industry, and strengthen long-term sovereignty over its energy future.
The tender, to be opened in late 2025 for Southern Andaman blocks, aims to tap reserves estimated at up to ten trillion cubic feet — potentially enough to meet domestic demand for decades and reduce reliance on volatile liquefied natural gas imports.
Energy authorities are framing the move as critical in light of declining output from mature Gulf of Thailand fields and shrinking piped imports from neighbouring regions.
Analysts warn that without fresh domestic discoveries, the nation could face gas supply gaps exceeding one billion cubic feet per day by 2028 and growing further by 2035.
The planned bidding round has already drawn interest from major regional and global energy firms, including large producers capable of investing in high-risk deep-water exploration.
Authorities have proposed a modernised, hybrid-contract model — blending concession elements with production-sharing terms — to offer better fiscal and regulatory conditions and attract serious bidders.
Officials emphasise that blocks offered in the auction will be located away from major tourist and coastal zones to minimise environmental and social impacts.
They also highlight the potential economic benefits: substantial foreign investment, job creation, local infrastructure development, and long-term energy security.
As the auction process unfolds, Thailand is betting that unlocking Andaman gas will stabilise domestic energy costs, secure supply for power generation and industry, and strengthen long-term sovereignty over its energy future.
