Thailand’s energy minister Prommin Lertsuridej said the rising cost of steel, which has gone up by almost 50%-60%, has “blown out” the cost of the project.

“Even though rising oil prices are a positive factor for the project, the review is needed to compare the pros and cons of hefty oil prices against higher construction costs,” he said.

It is understood Sinochem is losing interest in the project as it cannot guarantee purchasing around 500,000 bopd of crude from the Landbridge. The Chinese firm and its rival, China National Petroleum Corp, are still keen on purchasing oil … but not at the amount originally envisaged.