Thailand's petrochemical industry is mainly gas-based: natural gas is the feedstock used by atleast 50% of the industry. Naphtha is a feedstock that is mainly sourced domestically compared with imported naphtha and crude. Keeping in view the escalating costs of oil resulting in rising feedstock costs, the Thai petrochem industry will enjoy lower raw material costs.
Thai petrochemical producers have the lowest costs in Southeast Asia, making the prospects for Thailand's petrochemical industry remain promising as far as 2008. However, to be globally competitive, Thai petrochemical manufacturers will need to develop their human resources and marketing networks both domestically and externally. The government will have to spell out clarity in its feedstock policy to ensure steady and sufficient supply of raw materials to support gas-based petrochemical production in the long term. The recent increase in petrochemical capacity from Iran is unlikely to affect the market as demand continues to exceed supply.
07-Jul-06 
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