Call for oil pipelines to North

Call for oil pipelines to North

A worker stands next to a digger on the designated site for the Thai-Malaysian gas pipeline project in Chana district, Songkhla. (Bangkok Post file photo)
A worker stands next to a digger on the designated site for the Thai-Malaysian gas pipeline project in Chana district, Songkhla. (Bangkok Post file photo)

The Energy Business Department says it would welcome applications for licences to develop oil pipelines from the Central region to the North and Northeast of Thailand.

Director-General Witoon Kulchroenwirat said the scheme would be under a first come, first served basis.

The department was recently in talks with potential investors on the possibility of developing oil pipelines to the North and Northeast regions, including Fuel Pipeline Transportation Co (FPT), PTT Plc and Thai Petroleum Pipeline.

No deals have been concluded as the companies need to discuss the issue with their shareholders before getting approval.

A regulation on licences will be finalised next month as per the country's Fuel Demand and Supply Development Plan (2015-39), which states that oil pipeline logistics projects need to be approved by the National Energy Policy Council.

Mr Witoon said the department would discuss a tentative framework for the pipelines with Energy Minister Narongchai Akrasanee.

"Each project would be a joint investment. However, whoever acts first will get the licence first," he said, adding investors should receive environmental impact assessment approvals before getting licences.

FPT, a subsidiary of Bangkok Aviation Fuel Services Plc, recently planned to resubmit an application for a licence to build a 6.6-billion-baht oil pipeline from Ayutthaya to Lamphun. The company conducted a feasibility study in 2009 before submitting it to the Energy Ministry for a licence in 2013. The project sat fallow without clarification.

Transporting fuel through a pipeline is 50% cheaper than using oil tankers, which can also cause massive damage to highways.

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