Major petroleum refining facilities in Thailand remain functional and consistently provide the country with processed fuel, even as tensions rise in the Middle East, reported the Petroleum Refining Industry Club of the Federation of Thai Industries.
This guarantee arrives as worldwide energy markets prepare for extended uncertainty after the closing of the Strait of Hormuz, a vital passage for oil and natural gas transportation.
The organization mentioned that imported crude oil makes up 90% of Thailand's overall oil usage. Historically, almost 70% of this crude came from the Middle East.
Nevertheless, the continuous conflict in Iran has hindered deliveries via the Strait of Hormuz, compelling petroleum firms to seek alternative supply routes.
Rungnapa Janchookiat, head of the club, stated that Thailand's refining sector continues to demonstrate strength despite worldwide supply issues.
New purchasing approaches have focused more on West Africa and the United States, decreasing dependence on Middle Eastern sources.
The share of crude obtained from the Middle East has decreased from almost 70% during regular conditions to only 30%, as deliveries have been redirected via ports beyond the Strait of Hormuz, she mentioned.
Furthermore, refineries have implemented preventive actions including speeding up the acquisition of raw materials, boosting temporary storage capabilities, and briefly raising inventory levels of processed fuels. These initiatives have led to higher than usual petroleum stocks, offering protection from possible interruptions, according to Ms. Rungnapa.
In the meantime, PTT Plc, Thailand's state-owned petroleum and gas company, is increasing its attempts to obtain additional liquefied natural gas (LNG) due to decreasing local supply.
Liquefied Natural Gas plays a vital role in power production, with the company adjusting its purchasing approach to ensure energy security.
Prior to the Middle East conflict, PTT depended significantly on deliveries via the Strait of Hormuz. This dependence has since decreased to under half of all LNG imports, indicating interruptions in worldwide shipping lanes.
Natural gas from the Gulf of Thailand, which was previously the main source providing 70%, has dropped to 54%. The share provided by Myanmar has also decreased, going from 30% to only 11%.
Currently, imported liquefied natural gas makes up 35% of the nation's overall energy supply, highlighting an increasing reliance on foreign resources.