Energy Minister Akanat Promphan has outlined his approach to managing Thailand’s energy sector amid global volatility, saying the current climate presents the right moment for structural reform.
He said Thailand should turn crises into strategic opportunities by attracting investment and strengthening its competitiveness, particularly as neighbouring countries continue to record stronger economic growth.
One of the key priorities, Mr Akanat said, is to use the Land Bridge project as a tool to enhance national energy security.
He said the project should go beyond roads and railways, and must include comprehensive energy infrastructure, including large oil storage facilities, or tank farms, as well as an oil pipeline system linking Thailand’s two coastlines.
The plan would position Thailand as an alternative to Singapore by encouraging oil-producing countries in the Middle East to store crude oil and conduct trading in Thailand, rather than relying solely on existing regional markets.
Mr Akanat said the project could also help Thailand respond to risks surrounding the Strait of Hormuz, a key oil transport route that accounts for more than 30% of global oil trading volume.
If the route were disrupted, he said, Thailand could benefit economically by hosting oil storage facilities for other countries, while also strengthening its own energy security by ensuring a continuous domestic supply.
Another major priority is the establishment of a Strategic Petroleum Reserve, or SPR, as a national oil reserve system.
At present, private operators are legally required to hold oil reserves, creating additional costs for businesses.
“Thailand should have a reserve depot owned by the state or based on government-to-government (G2G) cooperation for genuine security.”
“I am confident that, with Thailand’s potential, with as many as six refineries and the capacity to produce finished oil products, diesel and petrol in excess of domestic demand, Thailand can become the ‘Last Man Standing’, or the last country still with energy to use and able to survive even if the world faces an energy shortage crisis.”
Mr Akanat also addressed plans to revise the ex-refinery price structure, saying domestic prices should not be based entirely on Singapore benchmarks.
He said Thailand has its own refineries and does not import finished oil products, but instead imports crude oil for domestic refining.
The ministry also plans to promote rooftop solar power as part of efforts to reduce reliance on imported liquefied natural gas, or LNG, whose volatile prices directly affect electricity bills.
“We must know how to change and treat the illness while there is still a chance. If we do not adapt now, the body may not be strong enough to survive in the future.”
“Building immunity and giving vitamin boosts through energy reform during difficult conditions will allow us to look back with pride in one year and say we have built real strength for the country.”
