Extra LPG imports required as El Nino hits dams in Laos
The impact of El Niño phenomenon will reduce the amount of hydroelectricity that Thailand planned to purchase from Lao PDR this year by as much as 4 billion units, a source from the Energy Ministry revealed on Thursday.
El Niño is triggered by a rise in surface temperatures of the eastern Pacific Ocean, leading to a phase of planetary warming. The natural phenomenon usually occurs every two to seven years and brings reduced rainfall in Southeast Asia and southern Australia.
Due to the imminent drought that will be brought about by this natural phenomenon, the ministry estimates that dams in Laos would be able to produce only 19 billion units of electricity for export to Thailand, the source said.
The ministry had planned to purchase some 23 billion units from its neighbour this year, which is equivalent to 11% of the country’s overall power demand.
To prepare for the shortfall in hydroelectricity, which is about 2% of domestic demand, the ministry is planning to import an additional 480,000 tonnes of liquefied natural gas (LNG) this year. The original plan called for the import of a total of 6 million tonnes.
This could result in a small hike in power bills from January to April next year, said the source, adding that the hike should not be too concerning as the price of imported LNG is still low at around US$ 12-13 per million BTU.
The source added that Thailand’s dams can satisfy only 3% of domestic electricity demand. The kingdom therefore relies on domestic power plants that use fuels, and electricity purchased from its neighbour.
Currently, the electricity generation cost from dams is 2 baht per unit, while that from LNG-fuelled power plants is quadruple that, at 9 baht per unit.
