Thai energy sector invites Korean companies

Gheco One Thermal Power Plant at the Map Ta Phut Induestrial Estate in the eastern Rayong province of Thailand has the capacity of generating 700 megawatts of electricity. Doosan Heavy Industries & Construction built the plant, which is the third-largest in the country. / Korea Times file

Thai Ambassador to Korea Kittiphong Ranong

By Kim Se-jeong

Thai Ambassador to Korea Kittiphong na Ranong has invited Korean companies to invest in the energy-related infrastructure in his country to help the Southeast Asian nation meet its growing demand.

“This is one of the areas Korea can play a role,” Amb. Na Ranong said during an interview with The Korea Times.

Bidding for a project to build six natural gas-fired power plants is underway, and the deadline is April 11.

As part of the Independent Power Producer scheme, Thailand plans to complete the construction work in 2022 so that the six plants can generate 5,400 megawatts of electricity.

Na Ranong said Thailand is also considering increasing its oil reserves to cope with any national crisis.

“We have energy reserves that can only last for 30 days. We plan to increase it up to 90 days. And this is also an opportunity for Korea. To build new additional facilities, we need a huge investment,” he said.

A series of new projects illustrates a growing Thai economy that was once predominantly run on agriculture.

Now, Thailand is the fourth-richest country in the Association of Southeast Asian Nations (ASEAN) by GDP per capita, after Singapore, Brunei and Malaysia. Its manufacturing sector accounts for almost 40 percent of its Gross Domestic Product, according to the envoy.

He said the expanding Thai economy is seeing a surge in energy demand.

The nation’s electricity generation capacity spiked from 28,000 megawatts in 2007 to 32,000 megawatts in 2012. Thailand is now heavily dependent on fossil fuel imports.

In 2011, 55 percent of its energy was imported — crude oil mainly from Gulf states Qatar, Saudi Arabia and Kuwait; coal from Indonesia and Australia; and natural gas from Myanmar and Malaysia.

Thailand has become the No. 1 investor in Myanmar to tap energy sources. One percent of its electricity comes from Laos.

But, Thailand exports oil products. Seven refineries in the country turn the crude oil into gasoline, jet fuel, diesel and other products, selling them to other countries, including Korea.

“Even President Lee Myung-bak was surprised when he was briefed that Korea buys oil products from Thailand during his trip,” the envoy said.

What makes Thailand stand out is the promotion of renewable energy, especially biofuel and hydroelectric power.

Under its Renewable Energy Development Plan devised in 2009, Thailand is seeking to bring such energy to nearly 20 percent of the nation’s power supply mix by 2022.

The country is making a progress in its efforts to diversify its energy sources by making use of cassava, sugar cane and palm oil, according to the International Energy Agency.

When it comes to water, Thailand is faced with a more imminent challenge — water management.

A devastating flood in late 2011 of the Chao Phraya River inundated a big portion of Bangkok, costing more than 800 lives. Fifty-six out of Thailand’s 77 provinces declared a state of emergency. The World Bank estimated the flood damage at $45.7 billion.

The ambassador said the massive devastation has changed the government’s approach to water management.

The country set up the Water Management and Flood Prevention Commission and rolled out 10 separate projects along river basins including the Chao Phraya.

The projects include building reservoirs and floodways, establishing flood retention areas, and setting up a data management and warning system.

“We have to calculate how much water we have during the rainy season; and what is the demand for the dry season,” Amb. Na Ranong said, holding hopes high for the new system.

In a country with a six-month rainy season, flooding is a frequent phenomenon. The necessity for an adequate management system is growing to ensure a sufficient and stable water supply during the dry season crucial for rice cultivation.

Thai authorities are in the process of reviewing bidders for the $11.1-billion projects. K-Water is believed to be one of the strongest bidders.

Examining 55 years of bilateral relations, Na Ranong reiterated the importance of a level playing field, urging cautiously that Korea remove trade barriers. He said that he has been making efforts to have Korea lift its import restriction on Thai rice.

He noted that a plan to open a Thai cultural center in Korea is moving slowly, and expressed hopes to work closer with the ASEAN-Korea Center to speed up the opening.

The plan was agreed upon between the two countries last year during President Lee’s visit to Thailand.

The ASEAN-Korea Center, a nongovernmental organization, is mandated to promote exchanges between Korea and the 10 ASEAN member states. Established in 2009, it organizes a variety of programs for this.