Pipeline in southern Thailand

An international group comprising Sukothai Petroleum Co., Omani and Canadian interests have agreed to build a USD 450 million crude oil pipeline across southern Thailand to bypass the crowded Strait of Malacca. An agreement has been signed to build a pipeline stretching 160km from Satun province on the Andaman Sea coast to Songkhla on the Gulf of Thailand side. Two terminals will be built, one at each end of the pipeline, each with a storage capacity of 10 million barrels of crude oil. Single-buoy moorings will be installed on each end of the pipeline, 15–20km off the coasts, to load and offload crude from very large carriers. Other single-buoy moorings will service tankers with capacities of 200,000 to 300,000 deadweight tons. Carriers in the Strait Malacca are limited to 150,000 deadweight tons. The pipeline is to have a throughput capacity of about 1 million barrels a day, while 12 million b/d is now shipped through the straits, the report says. Sukhothai Petroleum and Oman’s Talal al-Zawawi Enterprise LLC will each hold a 45% stake in the joint venture, Taksina Pipeline Co. Ltd., while Canada’s SCN Lavalin will hold 10%.

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