RP, Thailand to set up regional 'petroleum hub'

RP, Thailand to set up regional 'petroleum hub'

Associated Press Manila

The Philippines and Thailand are to begin talks this week in establishing a Southeast Asian "petroleum hub" to boost energy supply in the region, Manila's energy department said on Monday.

A 22-member delegation led by Thai energy minister Prommin Lertsuridej and senior officials of state Petroleum Energy of Thailand are to arrive on Tuesday and meet with his counterpart Vicente Perez and President Gloria Arroyo.

Both sides are to create a "technical working group" to explore areas of cooperation "in the utilization of existing storage facilities," the department said in a statement.

Discussions will also focus on investment opportunities in the upstream and downstream oil and gas sectors, with the two ministers expected to discuss a joint bid to "establish regional petroleum hub that will bolster energy supply" in Southeast Asia, China, Japan and South Korea.

"The Philippines and Thailand have strongly pushed for the creation of a petroleum hub that will be used as strategic locations for stockpiling and distribution points in Southeast Asia," Perez said.

Prommin's visit, the first of a Thai energy minister here, came after he and Perez agreed at the sidelines of the Asia Pacific Economic Cooperation (APEC) forum in Bangkok last year to boost energy cooperation.