US oil and gas giant Exxon Mobil Corporation has scrapped its 330-billion-baht ethylene cracker and refinery expansion project in Chon Buri, but the decision will not affect the Eastern Economic Corridor (EEC) scheme, says a source at the Industrial Estate Authority of Thailand (IEAT) who requested anonymity.
Chon Buri, Rayong and Chachoengsao provinces form the EEC zone, the government's flagship high-tech industrial hub.
Earlier in 2020, the IEAT hired the Petroleum Institute of Thailand for 20 million baht to conduct a feasibility study of this project, set to be located in the Sri Racha district in Chon Buri. The land, which is not far from the Laem Chabang deep-sea port, spans around 3,000 rai, the source said.
Texas-based Exxon Mobil decided to cancel its investment because of the impact of Covid-19. Industry Minister Suriya Jungrungreangkit said earlier the company was affected by low consumption of fuel and petrochemicals.
"The government remains confident investments in the EEC will continue to grow and will not be affected by the decision," the IEAT source said.
Veeris Ammarapala, governor of the IEAT, believes the EEC has the potential to attract both Thai and foreign investors.
"The EEC area is a good location for development projects, supported by the Laem Chabang deep-sea port, U-tapao airport in Rayong, and future infrastructure like a high-speed train system connecting three airports," Mr Veeris said.
The reopening of the country to foreigners, which began late last year, and the government's decision to abandon RT-PCR testing for vaccinated arrivals since May 1 will also help facilitate investors' travels to Thailand, the IEAT said.
He said the IEAT will support the government in its bid to increase the value of foreign direct investment, aiding the Thai economy.
To strengthen its industrial operations, the IEAT is planning to form a joint venture with a company to run electricity and water production businesses to supply factories on its industrial estates, said Mr Veeris. The IEAT has mainly focused on land sales and leases in industrial areas to this point.
"We plan to cooperate with a SET-listed renewable energy firm to develop a power plant and run a solar power business," he said.
The joint venture, in which the IEAT will hold a 25-49% share, is expected to be established over the next 1-2 months.