The assembly between Prime Minister Srettha Thavisin and his Cambodian counterpart Hun Manet final week revived hope for joint petroleum exploration and manufacturing between the 2 international locations within the Gulf of Thailand.
They’re getting ready to carry additional talks on the overlapping claims space, also called OCA, the place hydrocarbon assets could also be found, resulting in the event of a brand new petroleum block to assist the 2 international locations higher handle their vitality shares.
Explainer expands on the necessity for Thailand to discover and produce extra fossil gas given its dedication to selling renewable vitality, a part of a world pattern to chop carbon dioxide emissions.
What’s the overlapping claims space?
The OCA refers to an space spanning 26,000 sq. kilometres claimed by each international locations that’s believed to be wealthy in fossil-fuel sources.
In response to the Division of Mineral Fuels, the realm is prone to be a brand new petroleum supply as a result of it’s close to the Bongkot and Erawan fuel blocks.
A number of rounds of talks on joint growth of vitality assets have been held, however there was no progress on the dispute over maritime territory within the OCA.
Progress in negotiations has stalled for the reason that Thaksin Shinawatra administration referred to as for such discussions in 2001.
Sontirat Sontijirawong, a former vitality minister, raised the difficulty in 2019 throughout a gathering of Asean vitality ministers.
With out an settlement, the 2 international locations face a stalemate on exploring for petroleum within the space.
Thai vitality officers need talks to renew. Pichai Naripthaphan, a former vitality minister, urged authorities within the two international locations to work collectively to deal with their variations, paving the best way for joint advantages from oil and fuel manufacturing in addition to within the petrochemical trade.
The OCA has excessive potential to be a brand new petroleum supply as a result of it’s situated close to Erawan, Thailand’s largest fuel block, mentioned Warakorn Brahmopala, director-general of the Division of Mineral Fuels.
Thailand desires to provide extra fuel to scale back its dependence on expensive imported liquefied nationwide fuel, which drives up electrical energy payments.
Fuel accounts for about 60% of the gas used for energy era within the nation.
Why is Thailand eager to hurry up OCA talks?
Power specialists are involved the worldwide pattern for clear vitality may hinder new petroleum growth tasks, which emit carbon dioxide.
Thailand dedicated to affix the worldwide neighborhood to struggle world warming, attributable to the growing greenhouse fuel emissions.
In 2021, premier Prayut Chan-o-cha vowed on the twenty sixth UN Local weather Change Convention in Glasgow Thailand could be extra aggressive in addressing local weather change, striving to achieve carbon neutrality, a steadiness between carbon dioxide emissions and absorption, by 2050, together with a net-zero goal, a steadiness between greenhouse fuel emissions and absorption, by 2065.
Power officers are engaged on a brand new nationwide vitality plan (NEP) primarily based on Thailand’s dedication to chop carbon dioxide (CO2) emissions.
Beneath the NEP, renewables will make up virtually 50% of gas used for energy era by 2037.
If joint petroleum growth within the OCA continues to be delayed, it is going to be tougher for the 2 international locations to push forward with the mission as the worldwide pattern is to scale back world warming, mentioned Mr Pichai, who’s an advisor to Mr Srettha.
Fuel is taken into account “cleaner” than oil, however Mr Pichai mentioned greater fuel manufacturing will likely be arduous to justify as many international locations are dedicated to decreasing CO2 emissions generated by fossil fuels.
Khomgrich Tantravanich, secretary-general of the Power Regulatory Fee, mentioned he’s additionally involved about fuel exploration and manufacturing growth sooner or later due to world efforts to fight local weather change.
Companies wish to use extra renewable vitality to keep away from non-tariff boundaries imposed on their merchandise exported to international locations with guidelines to scale back merchandise created from carbon-intensive manufacturing, mentioned Mr Khomgrich.
How ought to Thailand and Cambodia push forward with OCA discussions?
Mr Srettha mentioned following his assembly with Hun Manet, each international locations agreed to strengthen cooperation within the discipline of vitality safety and maintain talks on joint exploitation of hydrocarbon assets within the OCA.
Bangkok and Phnom Penh have agreed to debate the delimitation of maritime boundaries together with the exploitation of vitality assets, in keeping with a authorities assertion.
The Overseas Affairs Ministry was instructed to seek the advice of with the Power Ministry and Royal Thai Navy on the difficulty for additional dialogue with the Cambodian facet, mentioned Mr Srettha.
Economist Anusorn Thammajai, a former board member of the Financial institution of Thailand, mentioned if the talks are profitable, the following stage of petroleum exploration and manufacturing, often known as E&P, mustn’t show troublesome.
He mentioned he believes the event of a brand new E&P facility within the OCA would take much less time than the platform in Erawan, which was first explored some 40 years in the past.
Mr Anusorn mentioned trendy know-how and up to date geographical details about the OCA would facilitate the work of builders and operators.
Fuel pipelines and fuel separation crops must also profit manufacturing plans, he mentioned.
