SATURDAY, February 24, 2024

Management of oil and fuel vital to energy development

Management of oil and fuel vital to energy development

The Department of Energy Business will urge the new government to concentrate on the management of oil and fuel, one of the five plans integrated into the National Energy Plan.

According to Nantika Thangsuphanich, the department’s director general, the department is preparing to propose an Oil Plan to guide energy development for the next five years and provide a roadmap for the government.

The national plan features five separate components, namely:

Power Development Plan

Alternative Energy Development Plan

Energy Efficiency Plan

Natural Gas Management Plan

Oil and Fuel Management Plan

The Oil Plan has undergone a subcommittee review and is awaiting approval from the new energy minister. It will then undergo a final round of public scrutiny before being presented to the Cabinet for consideration. Delays in forming the government could impact the implementation of various projects, particularly if budget approvals are also delayed.

The Oil Plan framework comprises the following aspects:

Managing oil and fuel to ensure energy security by sourcing sufficient oil and fuel reserves, creating energy security, and setting new reserves targets under energy transformation impacted by electric vehicle (EV) policies.

Managing oil and fuel in the transportation sector, including biodiesel and E20 gasoline targets to be achieved by 2027.

Promoting efficient infrastructure investment, including oil pipeline transportation as a backbone and installing electric charging stations at gas stations.

Fostering new businesses for the future, such as advanced petrochemicals and bio-refineries, along with promoting renewable energy.

The business promotion strategy is designed to support energy transition and create valuable returns for investors and the country over the next five years (2022-2026), with a total investment of 34.9 billion baht, generating over 100 billion baht annually. This includes various projects such as petrochemical refineries, bio-refineries, and renewable energy projects.

Additionally, investments are being made in carbon capture and storage, all contributing to sustainable energy security. The first half of 2023 has seen an increase in fuel consumption by 2.7%, with gasoline consumption up by 5.9% and diesel consumption down by 3.7%. The government continues to provide fuel subsidies to maintain price stability.

These initiatives are aimed at supporting the growth of EVs and promoting sustainable energy solutions for the future.