Govt. mulls two energy bridge projects

BANGKOK, January 27 (TNA) - The Energy Ministry is undertaking two feasibility studies, aimed at strengthening energy security for Thailand and enabling the kingdom to become an oil transportation centre for Asia and the Pacific in future, said Suthep Liumsirijarern, director-general of Energy Policy and Planning Office. He said Energy Minister Pongsak Ruktapongpisal has ordered ministry officials to accelerate on conducting studies on energy bridge projects of which oil pipeline and oil depot linking between Myanmar’s Dawei city and Thailand’ Ranong province and another project of which pipeline connecting between Andaman and the Gulf of Thailand are constructed. The feasibility studies for the two projects, to be completed within the next few months, are conducted based on oil demand by Thailand and countries in Asia-Pacific such as China, Japan and South Korea, said Suthep. On energy bridge linking between Andaman and the Gulf of Thailand, a pipeline with a total distance of about 300 kilometres will be constructed along a road from Phangnga province to Sichon district in Nakhon Si Thammarat province. An oil depot will be built in Sichon district. The pipeline is expected to transport between 8-10 million barrels daily. It is hoped that the depot and the pipeline could help boost the country’s oil reserves to 90 from 36 days while the project could also assist customers in China, Japan and South Korea as well as oil producers in the Middle East. Suthep said traffic of oil transportation at the Malacca Straits has started to become congesting. Maximum capacity is 17 million barrels a day while current transportation is at 15 million barrels daily. It is projected that crude oil demand for countries in Asia and the Pacific would increase to not less than 25 million barrels daily in the next two decades. And if Thailand does not build the energy bridge, consuming countries in the region would have to transport oil through Indonesia or Australia which would cost more due to farther distance. Suthep said he expected that both oil consumers and producers in the region would become enthusiastic and may invest in the venture. The Tavoy project calls for a construction of a pipeline which could transport two million barrels of crude per day. Total distance is 500 kilometres and it ends at an oil refinery in Rayong’s Map Ta Phut. The projects is projected to help boost development in Myanmar and also cater to rising oil demand in Thailand which is expected to rise to double to two million barrels daily in the next ten or twenty years. (TNA)