BANGKOK, Thailand – PTT has postponed the conclusion of talks with potential foreign partners for its petrochemical and refining businesses, citing continued uncertainty caused by geopolitical tensions in the Middle East. PTT President and CEO Kongkrapan Intarajang said the company had originally aimed to finalize partnerships by the end of 2026. However, the conflict in the Middle East has significantly altered market conditions, prompting potential partners to reassess their investment plans. The partnership search involves three major PTT Group companies — PTT Global Chemical (PTTGC), Thai Oil (TOP) and IRPC — with PTT seeking foreign investors to participate in its petrochemical and refining businesses.
Kongkrapan said the Middle East conflict has created both challenges and new opportunities for the group. Companies with investments in petrochemical and refining operations in the region that are facing difficulties exporting oil are now considering investments in Southeast Asia, where demand for petroleum products and plastics remains strong. PTT is currently in discussions with a new foreign company that has investments in the Middle East and has expressed interest in becoming a partner in the group’s petrochemical and refining businesses.
At the same time, potential partners that had previously been negotiating with PTT are reviewing their plans because market conditions have changed significantly. Before the conflict, around 70% of PTT Group’s crude oil requirements came from the Middle East. Disruptions to oil exports and the closure of the Strait of Hormuz forced the group to diversify its crude supplies and seek alternative sources.
Kongkrapan said PTT has since reduced its dependence on Middle Eastern crude to around 30%, replacing supplies with crude from other regions. The disruption has had a wider impact on Asian refiners and petrochemical producers, with supply and shipping risks affecting crude and feedstock availability across the region. Despite the improving performance of the petrochemical and refining industries, Kongkrapan stressed that PTT has no plans to abandon its search for strategic partners.
Under the planned partnership structure, PTT would remain the major shareholder of the group’s flagship petrochemical and refining businesses, while new partners could provide additional investment, expertise and access to new petroleum resources.
Kongkrapan said the company would continue assessing potential partners carefully, with the aim of strengthening PTT Group’s competitiveness and diversifying its sources of petroleum supply.
PTT has already been diversifying its crude sourcing in response to the Middle East crisis, securing supplies from countries including the United States, Brazil, Nigeria, Angola, Libya, Australia and Malaysia. The delay in finalizing the partnerships therefore does not represent a cancellation of the strategy, but rather a reassessment of investment conditions amid a rapidly changing global energy market.
