The Thai petrochem industry could see major losses in the event of failure of its government to strike an agreement with neighboring Cambodia on overlapping claims in the Gulf of Thailand. Thailand needs Cambodia to unlock ‘huge’ gas reserves in the Gulf of Thailand, as per Bloomberg. Thailand is likely to deplete its gas in 15 years-its petrochemical makers rely on components of wet gas from the Gulf of Thailand.
Development in the 26,000 sq kms, more than twice the size of Qatar, has stalled for over three decades. Gas reserves in the disputed zone are estimated to be equal to the country’s current reserves, which BP Plc estimates at 11 trillion cubic feet. It will take at least 10 years to pump gas out of the ground after a political agreement is reached. A political concurrence seems likely as Cambodia is determined to amicably resolve the dispute.