Energy
From The Report: Thailand 2014
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For many years Thailand has focused on increasing energy generation so that it could power its industrial growth and meet the energy needs of an increasingly prosperous society. Achieving this objective was a requirement in terms of sustaining economic growth and, so far, the country’s energy production has succeeded at keeping pace. Thailand has one of the highest electrification rates in South-east Asia. As a percentage of total generating capacity, the share claimed by hydropower has dropped considerably, from 21.8% in 1986 to 3.1% in 2013. Demand for natural gas has recently outstripped Thailand’s supply of dry gas, forcing the country to increasingly rely on imports of more expensive liquefied natural gas (LNG). Capacity will grow, but renewables, LNG, imports and conservation will play a greater role in helping the country meet its energy needs. Overall, the sector may become more interesting, as new solutions will be required to sustain ongoing economic growth, while at the same time appeasing the environmental demands of the people.

This chapter contains interviews with Pailin Chuchottaworn, CEO, PTT Group; Veerasak Kositpaisal, CEO and President, Thai Oil; and Wandee Khunchornyakong, CEO and President, SPCG.

Articles from this Chapter

Overview

Rising to the challenge: A range of initiatives have been implemented to help boost the country’s generating capacity
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For many years Thailand has focused on increasing energy generation so that it could power its industrial growth and meet the energy needs of an increasingly prosperous society. Achieving this objective was a requirement in terms of sustaining economic growth and, so far, the country’s energy production has succeeded at keeping pace. Thailand has not only managed to power its fast-growing industrial base and meet the demands of its evolving consumer society, but the country has also been able to…

Interview

OBG talks to Pailin Chuchottaworn, CEO, PTT Group
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Interview:Pailin Chuchottaworn While Thailand’s energy demands continue to increase with limited domestic resources, where do you anticipate energy investments taking place? PAILIN CHUCHOTTAWORN: With respect to the upstream oil and gas sector, we anticipate continued investments in exploration and production (E&P) activity across Thailand, particularly in owned petroleum sources to augment existing reserves. We also expect there to be a broader expansion of petroleum exploration sources…

Interview

OBG talks to Pailin Chuchottaworn, CEO, PTT Group
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Interview:Pailin Chuchottaworn While Thailand’s energy demands continue to increase with limited domestic resources, where do you anticipate energy investments taking place? PAILIN CHUCHOTTAWORN: With respect to the upstream oil and gas sector, we anticipate continued investments in exploration and production (E&P) activity across Thailand, particularly in owned petroleum sources to augment existing reserves. We also expect there to be a broader expansion of petroleum exploration sources…

Interview

OBG talks to Veerasak Kositpaisal, CEO and President, Thai Oil
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Interview:Veerasak Kositpaisal Is there scope for investment in Thailand’s downstream petrochemicals and refining industry? VEERASAK KOSITPAISAL: In the refining industry, I do not expect anyone to build large refining facilities in the near term, but there may be capacity creeping online in the coming years. The cause will largely be the increase in demand for petroleum products from first-time buyer schemes and the stabilising pump price of diesel. In the petrochemicals sector, however,…

Analysis

Solar flare: Government efforts have helped boost solar generating capacity
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As Thailand's natural gas runs low and as oil imports increase, the country is aggressively promoting new sources of energy and encouraging the increased use of alternative fuels. Furthermore, over time, Thailand’s alternative energy goals have become more ambitious. The Renewable Energy Development Plan (REDP), released in 2009, called for 20% of final energy consumption from renewables by 2020. Two years later, the Alternative Energy Development Plan was announced, upping the target to 25% by…

Interview

OBG talks to Wandee Khunchornyakong, CEO and President, SPCG
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Interview:Wandee Khunchornyakong To what extent can Thailand’s solar power industry benefit from investment opportunities abroad? WANDEE KHUNCHORNYAKONG: Thailand is one of the most advanced locations for solar development in the ASEAN region. The strength of the solar industry in this country has led to the development of expertise that can successfully be applied regionally and internationally. As such, a number of solar power companies are now actively pursuing opportunities across South-east…

Analysis

Oil alternatives: Natural gas is becoming an increasingly important vehicle fuel
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Over the last decade, oil prices have risen substantially and, in response, the Thai government has been employing a number of policies and initiatives to promote the switch amongst car owners from gasoline to natural gas powered vehicles (NGVs). The motivation behind this shift has been twofold. Firstly, with around 70% of the country’s domestic energy supply coming from natural gas, the measure is aimed at stimulating further demand for a locally generated and less costly resource. Secondly,…

Analysis

Higher ground: Concerted efforts to improve flood management infrastructure
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Following severe flooding in 2011, the Thai government created an action plan to prevent a water disaster of that scale from occurring again. The authorities budgeted $3.9bn for mitigation efforts, which included new floodways and flood diversion channels. Furthermore, a $2bn programme was initiated to transform farmland north of the capital city into a retention area for holding 10bn cu metres of water. Although expensive, these undertakings were justified, given the massive cost of the floods to…

Analysis

Looking further afield: Opportunities abroad are increasingly attracting Thai energy companies
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Thai energy companies – utilities and oil companies alike – have been making significant and aggressive moves outside of Thailand’s borders. This activity has been driven by a number of reasons, the simplest being that it is becoming increasing difficult to work at home. Companies are facing growing environmental restrictions and activism, and are finding that power plants, mines and hydrocarbons facilities may be easier to develop and operate in other countries. More broadly, Thai companies…

Analysis

Changing priorities: Coal is set to take a greater share of the country’s energy mix
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In 2013, Thailand went from a country increasingly wary of coal to one actively pursing it for power generation. Late in the year, the Energy Policy and Planning Office said that it would be updating its Power Development Plan (PDP), and that coal would play a larger role in the country's energy future than was outlined in the previous version of the PDP. With oil and liquefied natural gas prices high, and domestic natural gas reserves on the decline, coal is needed to take the edge off of prices…