Thai Refineries Avoid Middle East Oil Shock with Diversified Supplies

Thailand's Department of Energy Business (DOEB) assures that the country will not face a crude oil shortage despite the ongoing war in the Middle East. Director-General Sarawut Kaewtathip said that shipping routes remain partially open, ensuring continued transport of crude oil and petroleum products.

The Strait of Hormuz, one of the world's most critical oil transit points, has not been completely closed, according to DOEB. While tensions have disrupted some shipping lanes in the Red Sea and surrounding areas, vessels are still able to pass through.

Thailand's refineries have adjusted procurement strategies to reduce risks associated with Middle Eastern crude. The country operates six oil refineries, with three under PTT Group and three others operating independently. These companies diversified their sources to reduce reliance on Middle Eastern oil, which previously accounted for 58% of imports. That figure has now dropped to 30%.

PTT Global Chemical, the country's largest petrochemical producer, reported that it has not imported any crude from the Middle East during the conflict. Instead, it imports from Fujairah port in the UAE, located outside the Strait of Hormuz, ensuring uninterrupted supply. Its parent company Chevron has supported operations by securing alternative sources.