EPPO to push for hub goal ahead of AEC

EPPO director-general Suthep Liamsiricharoen yesterday said the office had already taken some preparatory steps for the project, which is being pursued in line with government policy.
These include a feasibility study for investment in an economic land-bridge project, which would connect the Andaman coast with the Gulf of Thailand.
The EPPO will be the central coordination point for public and private organisations in connection with the hub establishment project, he said, adding that the project’s operating budget has been set at Bt30 million for the 2014 to 2016 fiscal years. No budget has been set for the current fiscal year, however.
“Thailand has the potential to become a regional energy hub, particularly for alternative energy. Previously, no organisations have pushed for this to happen, so the Energy Ministry has assigned the EPPO to take the matter forward,” Suthep said.
The hub, which would cover oil, natural gas and alternative energy, would have roles in investment promotion, similar to those of the Board of Investment, and marketing, the official said. It would also be coordinated with PTT’s Asean investment plan.
Comments and opinions will be gathered over the next 12 months from within Thailand and elsewhere in Asean on how interested parties might be prepared to support the establishment of such a hub, as well any obstacles they foresee.
A source from the Energy Ministry said that during one of Thaksin Shinawatra’s administrations, the Cabinet in July 2004 had resolved to set up a Sri Racha energy hub and proceed with a Strategic Energy Land Bridge (SELB).
At that time, 18 volumes of rules and regulations were amended to support the export of petroleum through the free zone, located in Chon Buri province.
The amendments focused on the procurement of sufficient oil warehouses for transactions in the free zone, facilitation of oil blending, a supportive tax system and accounts for oil trade, and a supportive financial system for oil trading.
The idea behind the proposed SELB was to promote the stability of oil procurement and reserves, add oil transport routes, ensure consistent development of the regional oil and petroleum industry and provide an economic stimulus for the Kingdom, and its southern area in particular.
Targeted markets included China, South Korea, Japan and other Far Eastern countries.
However, the project failed to take off, and the current Yingluck Shinawatra-led government is now seeking to revive it.
The EPPO has already conducted a preliminary feasibility study into the SELB project.