Out-Law News | 24 Aug 2021 | 12:25 am | 1 min. read
Thailand’s state-owned enterprises (SOEs) have invested over Thb100 billion ($3bn) in energy infrastructure projects between January and June this year.
According to Thailand’s deputy government spokeswoman Rachada Dhanadirek, most investment has gone into large projects by PTT Plc and the Electricity Generating Authority of Thailand (EGAT) and their subsidiaries. Projects have included “the new liquefied natural gas (LNG) receiving terminal in Rayong, the fifth natural gas pipeline project, and a nationwide electricity transmission expansion project”.
The goal for this year is to invest a total of Thb200bn ($6bn) in energy businesses, in part to make up for a slowing of private investment.
In May, PTT and its six core subsidiaries said they will spend Thb851bn ($25bn) on upstream and downstream businesses as well as new businesses between 2021 and 2025. The largest portion of the funds will go toward the development of oil, gas and petrochemical infrastructure.
Infrastructure expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “Mobilising public sector funding to stimulate the domestic economy has been a consistent global response to the impact of Covid-19. PTT and EGAT plan to undertake these infrastructure projects at this time bring together the twin national ambitions of building out a robust economy post pandemic, and also of meeting Thailand’s net zero commitments given that gas is likely to be an important transition fuel and given the importance of an advanced national electricity grid to support increased intermittency that will be introduced by further renewable energy deployment.”
Thailand’s government in June approved a set of economic stimulus measures worth Thb140bn ($5bn) to deal with the impact of Covid-19.