APAC refineries are gradually reducing their production capacity, with some temporarily shutting down operations, while PTT continues production as usual to ensure the country's energy security.
On 18 Apr 2026 GMT+7, reports indicated that major oil refineries in Southeast Asia, located in Singapore and Malaysia, are facing a crisis forcing them to announce production cuts and, in some cases, temporary shutdowns due to crude oil shortages. This shortage directly results from the ongoing conflict between the US-Israel coalition and Iran, which has led to the suspension of critical shipping routes such as the Strait of Hormuz. For instance, the refinery Prefchem in Malaysia has already shut down its main refining unit.
Meanwhile, industry giants ExxonMobil and SRC in Singapore have cut their production capacity to just 50-60% because they can no longer import crude oil from the Middle East—their primary source accounting for 65-70%—as usual. This has caused delays in delivering oil and petrochemical products across the region.
Across the Asia-Pacific (APAC) region, oil refineries are progressively reducing production, with some temporarily ceasing operations. Most operators are prioritizing business factors and cost management, leading to production cuts in several countries.
However, PTT Public Company Limited continues operating at normal production levels, stating that this approach is to safeguard the nation's energy security, in contrast to other operators who focus mainly on business management.
PTT has procured approximately 2 million barrels of crude oil from the Middle East in advance, which is currently being transported by the vessel Serifos and is scheduled to arrive in Thailand soon.
This procurement decision was made during a period of global market tension and high demand, causing crude oil prices to rise to about 130 US dollars per barrel, resulting in the company bearing higher than usual costs.
PTT assesses that this crude oil procurement during the period may pose a short-term risk of losses if global oil prices decline later, with an estimated impact of approximately 500–1,000 million baht. Nevertheless, PTT remains focused on maintaining the country's energy security as its primary objective.