The Industry Ministry has approved two state agencies studying the feasibility of allowing 3,000 rai of reclaimed coastland, adjacent to the Laem Chabang seaport in Chon Buri, to be used by ExxonMobil for its 330-billion-baht expansion project.
The Industrial Estate Authority of Thailand (IEAT) and the Petroleum Institute of Thailand (PTIT) will conduct the feasibility study.
Industry Minister Suriya Jungrungreangkit said the feasibility study should be completed in early 2020.
The previous plan involved reclaimed coastland of 1,000 rai.
This plan will support not only ExxonMobil but also other investors interested in Laem Chabang port, said Mr Suriya.
Chon Buri is a host province of the flagship Eastern Economic Corridor scheme, together with Chachoengsao and Rayong.
Mr Suriya said local activists would oppose the plan, and the government will listen to their opinions, as well as villagers and businesses.
"If the study shows the reclaimed land will create an economic stimulus, the government needs to promote this project," he said.
"If it shows it would destroy the environment and the lives of communities, the government will abandon the plan."
On Aug 9, ExxonMobil met with Mr Suriya to show its intention and commitment to its massive investment project for an ethylene cracker and refinery expansion project in Chon Buri's Sri Racha district.
The Texas-based parent has planned the expansion since March 2018.
Mr Suriya said the IEAT was ordered to negotiate with the Treasury Department for land appraisal prices of industrial estates to support small and medium-sized enterprises (SMEs).
"The agency's industrial estates have such expensive land prices that SMEs cannot afford it," he said.
"The ministry has a duty to support them and land is the main cost for SMEs, so they must consider carefully."
In addition, the IEAT was ordered to allocate a support fund for SMEs to seek potential locations in industrial estates, especially the Smart Park industrial estate in Rayong.
"The IEAT is a state enterprise, so it should take more action to help SMEs," said Mr Suriya.
"The government hopes the IEAT will mobilise state policies."
He also ordered the IEAT to speed up border special economic zones in Songkhla, Tak and Sa Kaeo. Land rental rates will be reduced in order to attract new investors, said Mr Suriya.