Thai Refineries Diversify Supplies Amid Mideast Tensions

Thailand's oil refineries have adjusted their strategies to mitigate risks associated with Middle Eastern crude due to ongoing tensions in the region. The Department of Energy Business (DOEB) assures that supply remains sufficient for all six domestic refineries, despite some shipping lanes being disrupted.

According to Sarawut Kaewtathip, director-general of DOEB, the Strait of Hormuz has not been completely closed, allowing continued transport of crude oil and petroleum products. The country's refineries have diversified their sources to reduce reliance on Middle Eastern oil, which previously accounted for 58% of imports.

PTT Global Chemical, Thailand's largest petrochemical producer, has not imported any crude from the Middle East during the conflict. Instead, it has sourced oil from Fujairah port in the UAE, ensuring uninterrupted supply. Other refineries have also adjusted their procurement strategies to reduce risks associated with Middle Eastern crude.

Thai Oil, the nation's largest refinery, secures crude from Fujairah, while Bangchak Corporation and Bangchak Sriracha rely on imports from Malaysia and Australia, respectively. IRPC imports oil from Fujairah and routes shipments via the Cape of Good Hope to avoid disruptions.