Electricity Authority of Thailand (EGAT), the country’s largest power producer, is considering importing liquefied natural gas (LNG) and building a receiving terminal to replace gas supplies from Myanmar that are slated to end, its top executive said.

The planned LNG imports will help offset the loss of natural gas from Myanmar whose gas supply contracts are expiring over the next 10 years, the governor of state-run EGAT, Soonchai Kumnoonsate, told Reuters.

LNG is an important source of fuel for Thailand, which uses natural gas for almost 70 per cent of its power generation, a quarter of which is imported from Myanmar. EGAT may join hands with state-controlled PTT, the country’s sole gas supplier, and other potential partners for the LNG project, Soonchai said in an interview.

A decision on the project will be taken after an internal study is completed, which may take up to two years, Soonchai said. He did not give details about the planned size or cost of the project.

“After gas purchasing contracts with Myanmar expire, power plants in the western region of Thailand may be affected and LNG will be a good choice to help minimise the impact,” he said.

These power plants, including the ones operated by its affiliate, Ratchaburi Electricity Generating, have a combined capacity of 6,000 megawatts.