Energy
From The Report: Thailand 2012
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The growth of Thailand’s heavy industries, as well as consumption among a burgeoning middle class, is fuelling demand for energy. On the production side, this demand is being partly met by increased lignite and natural gas extraction, while oil output continues to decline. The government is hoping that investment-friendly amendments to its Petroleum Act will help slow or reverse this decline. But natural gas growth is set to peak in 2013, and with domestic production already only responsible for one-third of Thailand’s energy needs, imports are set for a long-term increase. In response, the country is investing in liquefied natural gas import terminals and several pipelines, as well as hiking energy prices and promoting renewables.

This section features interviews with Pailin Chuchottaworn, CEO, PTT Group; and Chanin Vongkusolkit, CEO, Banpu.

Articles from this Chapter

Overview

Supply and demand: A variety of activities are being carried out to keep up with the increasing need for energy
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Feeding its expanding domestic industrial complex is an ongoing task for Thailand’s energy sector as domestic power demand and consumption continue to outpace supply. This is fuelling a rise in local energy production as the country tries to reduce its dependence on foreign energy supplies. From upstream production and downstream refining to developing the network of power stations, capacities are expanding across the country. The sector is doing this in a variety of ways – åby utilising…

Interview

OBG talks to Chanin Vongkusolkit, CEO, Banpu, and Chairman, Thai Listed Companies Association
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Interview: Chanin Vongkusolkit In your opinion, what does the future look like for international coal prices? CHANIN VONGKUSOLKIT: Demand in the past five years has been driven mainly by growth in Asia, especially in India, China and Indonesia. Traditionally big importers like South Korea, Japan and Taiwan have also seen expansion. The global situation may cause emerging economies like India and China to focus on domestic growth as exports slow. During the 2008 crisis, the anticipated drop in…

Analysis

Returning to growth: Power consumption rates are expected to pick up again
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The breakneck pace of electricity consumption growth took an uncharacteristic hiatus in 2011 following a decade of strong year-on-year expansion. Total national electricity consumption in 2011 dipped to 148.91 TWh, from 149.30 TWh the previous year, but it was still well above the 2009 level of 135.18 TWh, according to Energy Policy and Planning Office (EPPO) data. This slight hiccup was not, however, indicative of any larger problem in the power generating sector or the economy as a whole, but…

Analysis

Added incentives: Renewable power supplies are being expanded to reduce dependency on foreign imports
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As energy imports surge and power bills mount, Thailand is embracing a new strategy of decreasing its dependence on foreign energy sources through the expansion of alternative domestic power supplies. Possessing an extensive river network, strong solar radiation, particularly in the rural north-eastern areas, and an abundance of natural biomass, the country’s vast renewable energy potential is ripe for exploitation. “Thailand has huge potential to further develop its alternative energy strategies.…

Analysis

Planned improvements: New opportunities arise for water resource management firms
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Water resource management was thrust to the forefront of the nation’s collective conscience following disastrous floods in 2011. Although the economic impact of the floods has been substantial (amounting to BT1.44trn [$45.93bn] in losses and damages, according to World Bank estimates), participants in the water management sector and the government are already busy repairing the damage and making contingencies for the future. The floods and the memory of severe drought in 2006, which affected…

Analysis

Untapped potential: There are many hydrocarbons reserves waiting to be exploited
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With no new exploration concession issued since the 20th petroleum concession round ended in 2008, exploration and production firms are primed for new opportunities. The last round of bidding, which took place from May 2007-May 2008, offered up 65 exploration blocks (56 onshore and nine offshore). The government received 74 applications for 52 of these blocks and ended up issuing a total of 22 concessions for 26 blocks (19 onshore and seven offshore) to a number of firms, including Chevron Petroleum,…