Thai minister seeking energy ties with Russia,Indonesia
Thai minister seeking energy ties with Russia,Indonesia
Dow Jones,Bangkok
Thailand's Energy Ministry is pursuing cooperation with Russia and Indonesia that will pave the way for Thai companies to invest in petroleum exploration and power plant construction, Minister Prommin Lertsuridej said on Wednesday.
The collaboration also aims to boost trading in petroleum products between Thailand and the two countries, Prommin added.
"Thailand and Russia have agreed to set up a committee to study possibilities on petroleum trading as well as investment in petroleum exploration and pipeline network construction," Prommin told a press conference on Wednesday after meeting with Vladimir Karastin, deputy minister of Russia's Economic Development and Trade Ministry.
"If it's feasible, we may import oil from Russia to reduce dependency on the Middle East," he added.
Prommin said Russian companies have expertise in oil pipeline network installation. He said Russia may get involved with Thailand's trans-peninsular pipeline project to link the Andaman Sea and Gulf of Thailand, which would serve as an alternative route between the Indian Ocean and South China Sea.
In addition, Thailand will seek opportunities to develop gas fields in Indonesia and to construct power plants at coal mines in Indonesia, said Prommin.
Indonesia, which has shortage of power supply, has asked the Electricity Generating Authority of Thailand, or EGAT, to invest in power plant construction, he added.
State-owned PTT PCL, the country's oil and gas conglomerate, its unit PTT Exploration & Production PCL, and EGAT will take the lead in seeking business opportunities in the two countries, Prommin said.
According to Prommin, the Singapore government has expressed an interest to jointly invest in the Thailand's land bridge project, which includes petroleum terminals and trans-peninsular pipelines. The project involves an investment of US$700 million.
Prommin said he will hold talks with Japan's Bank of International Cooperation, or JBIC, Itochu Corp. and Mitsui Oil Exploration Co. to seek collaboration and investment in the project.
PTT, in which Thailand's Finance Ministry holds a 69 percent stake, also entered into a memorandum of understanding with China National Chemical Import & Export Corp., or Sinochem, to seek business opportunities in petroleum trading and investments in energy infrastructure.
"The collaboration with our alliances will lead to the success of the land bridge project and to secure the energy supply in the region," Prommin said.