Momentum is growing for the resumption of long-delayed talks between Thailand and Cambodia on joint petroleum exploration in the Gulf of Thailand, after the two countries showed interest in pushing ahead with the project.
Kurujit Nakornthap, executive director of the Petroleum Institute of Thailand, is urging the government to work with Cambodia to relieve the impact of global gas price fluctuations in the long term.
His statement came after the cabinet had an informal discussion on Tuesday about joint development of petroleum resources, the value of which has been estimated at 5 trillion baht.
There were also positive signals from Cambodia, which is keen to reopen talks on development at the overlapping claim area (OCA) between Cambodia and Thailand.
Mr Kurujit, a previous permanent energy secretary, said he believes the area can be a new natural gas source because it is not far from Thailand's two key gas blocks -- Erawan and Bongkot -- in the Gulf.
He stressed the need to develop a new gas field as a decline in domestic gas supply caused Thailand to import more costly liquefied natural gas (LNG).
More purchases of LNG have been blamed for driving up the fuel tariff, often known as Ft, which results in more expensive power bills.
Mr Kurujit said if the Thailand-Cambodia talks restart and lead to a joint petroleum business agreement, the two countries are likely to discover wet gas, which could result in a range of benefits.
Wet gas, which contains a proportion of hydrocarbon compounds heavier than methane, is a fundamental raw material for the petrochemical industry, he said.
The Thai petrochemical industry has so far depended on wet gas discovered in the Gulf of Thailand.
The OCA project would not only help the Thai government keep the Ft down, but it would also provide long-term support for petrochemical businesses, said Mr Kurujit.
Talks on the OCA were previously held, but there were no agreements.
He said now is an appropriate time for the two countries to seriously discuss building a joint petroleum business following the global energy crisis and the impact of the pandemic.
Khomgrich Tantravanich, secretary-general of the Energy Regulatory Commission, previously called on policymakers to set a clear direction for joint development of the OCA.
