Mr. Warakorn Brahmopala, Director-General of the Department of Mineral Fuels, stated that the department is preparing to propose an amendment to the Petroleum Act to extend the concession contract period. The current law allows only a single extension of 10 years, but the proposed amendment would allow for an unlimited extension period based on the potential of each expiring concession block, with each block considered individually. In addition, subordinate legislation such as ministerial regulations will be amended and proposed to the new Cabinet for approval.
The reason for this amendment is to ensure energy security and production continuity, following findings that some expiring petroleum blocks still have potential for oil and natural gas production. This aims to maintain uninterrupted production and avoid repeating issues similar to the Erawan field. The amendment must be expedited for Cabinet approval and subsequent review by the Council of State.
Concession blocks nearing expiration include the Thailand-Malaysia Joint Development Area (JDA), set to expire in 2029, the Sirikit Oil Field (S1)—Thailand’s largest onshore crude oil field—expiring in 2031, and two blocks of the Sinphuhorm Project, an onshore gas field in the Northeast region, which will see their contracts end in 2029 and 2031.
PTT Exploration and Production Public Company Limited (SET: PTTEP) is the operator or holds investment stakes in these areas. The company emphasizes the need for clear solutions on the continuity of petroleum operations at least 5 years before concession expiry to prevent domestic production shortfalls and elevated energy import costs.
Krungsri Securities (KSS) stated that the impending global LNG oversupply, mainly from the United States, is becoming a key driver in the new global energy structure, especially in Asia. LNG prices are projected to drop to near $7 per MMBtu within 2–4 years, enhancing competitiveness and significantly supporting energy expansion.
This trend will drive electricity demand among high-energy, high-stability industries such as data centers, semiconductors, and heavy industries. Major destination countries—India, China, Japan, Vietnam, and Thailand—stand to benefit structurally more than current market expectations.
From an investment perspective, KSS views this situation as clearly positive for midstream–downstream stocks over upstream gas producers, particularly gas distributors, LNG importers, and power plant operators, who can benefit directly from reduced gas costs and transform this into long-term profit growth.
It is also anticipated that the “deeper and longer” growth trend is in artificial intelligence (AI) and the digital economy in Asia, which requires not only increased electricity volume but also power that is stable, competitively priced, and can be rapidly expanded. As a result, natural gas is becoming the backbone of the new energy system, especially during the period when U.S. LNG enters oversupply.
This overall outlook presents a structural positive for Thai stocks that are in a direct position to benefit, such as PTT Public Company Limited (SET: PTT), the country’s principal gas distributor and a cornerstone of the national energy infrastructure, as well as Gulf Development Public Company Limited (SET: GULF), a key importer of LNG and a leading developer of large-scale power infrastructure.
Additionally, Independent Power Producers (IPPs) and Small Power Producers (SPPs) could benefit from the ability to acquire gas at reduced prices and convert it effectively into sustainable long-term electricity supply.
