Latest Oil Plan expected to draw THB113 bn investment to Thailand
The 2024 edition of the Oil Plan is expected to draw over 113 billion baht of investment to Thailand, the Department of Energy Business said on Friday.
The estimate was revealed during a public hearing on the draft plan for energy development between 2024 and 2037, and is being conducted until July 12.
On completion, the draft plan will be proposed to the National Energy Policy Council and the Cabinet for consideration.
The department explained that the draft plan focuses on energy transition with security and competitiveness if fuel demand drops in the next 10 years.
The draft plan covers:
Fuel management: To ensure energy security, fuel reserves will be reviewed, while fuel procurement will be aimed at meeting demand along with boosting resilience during a fuel crisis.
Logistics management: Managing fuel supply to meet a decline in the logistics sector’s demand along with supporting greenhouse gas reduction.
- Land transport: Reducing diesel and petrol to meet the demand, along with implementing regulations and standards to ensure quality and safety of hydrogen.
- Air transport: Promoting sustainable aviation fuel (SAF) to reduce greenhouse gas emissions in the aviation sector by using domestic materials like used cooking oil, palm oil and ethanol. SAF is expected to be mixed at 1 per cent of total aviation fuel in 2026.
- Marine transport: Promoting the production and distribution of renewable energy for cargo ship, such as a low-sulphur fuel oil called B24 VLSFO
Improvement of infrastructure for fuel production and transport: The guidelines on infrastructure improvement have been prepared to boost efficiency in fuel production and transport, such as applying digital technology in oil reserve management, promoting fuel transport via pipeline and setting up electric vehicle chargers at filling stations.
New business promotion: Promoting new ventures to enable entrepreneurs in the fuel supply chain to cope with energy transition and boost the country’s competitiveness, such as petrochemical, bioplastic and SAF, along with proposing mechanisms for attracting investment in new businesses by 2027.
Apart from attracting 113 billion baht investment to Thailand, the department also expects the draft plan to enable biodiesel and ethanol producers to generate over 71 billion baht in revenue annually.
The draft plan could save the cost of importing crude oil by 59 billion baht a year, while enabling farmers to generate 41.5 billion baht a year, the department said.
The department added that the draft plan could reduce Thailand’s greenhouse gas emissions by 7.1 million tons of carbon dioxide equivalent annually, equal to growing 2.6 million rai (0.336 hectare) of mangrove forest.
