Laos has secured a proper petroleum provide settlement with Thailand’s state-backed PTT Group, reinforcing gas safety amid uncertainty in regional vitality markets.
The Lao State Gasoline Firm signed the cross-border settlement with PTT Group in Vientiane on 2 June, with senior officers from each nations attending the ceremony.
The deal goals to make sure a steady and standardized gas provide whereas strengthening vitality cooperation between Laos and Thailand.
It additionally formalizes a essential provide relationship for Laos, which has no operational oil refinery and depends on imported refined petroleum. A home refinery stays below growth.
Thailand provides greater than 97 p.c of Laos’ refined gas imports and stays the nation’s largest buying and selling companion. In 2025, Laos imported greater than USD 4.4 billion price of Thai items, with diesel accounting for almost 1 / 4 of that whole.
The settlement comes after the Strait of Hormuz disaster examined Laos’ dependence on imported gas. Following the waterway’s closure in March, Thailand suspended most refined oil exports to guard home reserves, exempting solely Laos and Myanmar.
Throughout the disaster, Laos remained Thailand’s largest gas export vacation spot, receiving round 5.29 million liters per day, whilst volumes dropped 25 p.c from pre-crisis ranges.
