Thailand Diversifies Oil Supplies Amid Middle East Conflict

Thailand's Department of Energy Business (DOEB) has assured that the country will not face a crude oil shortage due to the ongoing war in the Middle East. According to DOEB, shipping routes remain partially open, allowing for continued transport of crude oil and petroleum products through the Strait of Hormuz.

Despite tensions disrupting some shipping lanes in the Red Sea and surrounding areas, vessels are still able to pass through. Thailand's refineries have adjusted their procurement strategies to reduce risks associated with Middle Eastern crude.

The country operates six oil refineries, with three under PTT Group (Thai Oil, IRPC, and PTT Global Chemical) and three others belonging to Bangchak Group (Bangchak Corporation and Bangchak Sriracha) and Star Petroleum Refining. These companies have diversified their sources to reduce reliance on Middle Eastern oil, which previously accounted for 58% of imports but has now dropped to 30%.

PTT Global Chemical, Thailand's largest petrochemical producer, has not imported any crude from the Middle East during the conflict, according to DOEB. Star Petroleum Refining sources oil from Fujairah port in the UAE, located outside the Strait of Hormuz, ensuring uninterrupted supply.