Engine Issues Continue to Delay Thai Navy’s Submarine Delivery from China

“The issue of engine replacement – from a German-made engine to a Chinese-made one – has become a significant problem, requiring more detailed negotiations between all parties involved,” said Thailand’s Defence Minister, Phumtham Wechayachai.
(DEFENCE SECURITY ASIA) – Thailand will need at least six more months to resolve longstanding issues surrounding the delivery of a submarine from China, a deal that has been delayed for years.
Thailand’s Defence Minister, Phumtham Wechayachai, stated that while the government aims to expedite the resolution of the submarine delivery, several critical matters must first be addressed.
One of the most pressing issues involves the performance of the Chinese-made engine designated for the submarine.
“The engine replacement issue (switching from a German-made engine to a Chinese-made one) has become a significant problem, requiring more detailed negotiations between all parties involved,” he said.
The minister underscored the importance of ensuring the performance of the Chinese-made submarine engine, despite the same model already being installed on eight submarines operated by Pakistan.
Wechayachai insisted that the submarine, built in China for Thailand and powered by the Chinese engine, must undergo performance testing for at least three to four months before Bangkok accepts the vessel.
S-26T Yuan class submarine made by China and was supposed to be procured by Thailand before engine problem scuttled the deal.
Simultaneously, the minister revealed that discussions are ongoing with Germany to explore the possibility of directly purchasing submarine engines from the European country for installation on the Chinese-built submarine.
However, the German government has yet to respond to Thailand’s proposal.
Thailand signed a contract with China in 2017 to acquire an S-26T Yuan-class submarine valued at USD 350 million (approximately RM 1.5 billion).
The submarine, originally scheduled for delivery to Thailand by the end of last year, is said to be 50% complete, but construction was halted due to the Covid-19 pandemic.
The procurement deal faces uncertainty as Thailand insists that its first submarine must be equipped with the German-made MTU396 engine, as stipulated in the contract.
China, however, is unable to install the MTU396 engine due to a European Union arms embargo that prohibits the export of military equipment or components to China.
As an alternative, Beijing proposed the use of its domestically developed CHD 620 submarine engine, produced by Henan Diesel Engine.
Thailand has resisted China’s push to install the CHD 620 engine on its submarine, maintaining its demand for a German-made engine.
S-26T Yuan class submarine
Reports from Thai media indicate that both nations had reached an agreement in June of last year to fit Thailand’s first submarine with the Chinese-made CHD 620 diesel-electric engine.
However, the fall of the military-led government under General Prayut Chan-o-cha appears to have shifted the government’s stance on the submarine project.
The administration of Prime Minister Srettha Thavisin, which succeeded General Prayut, refused to accept the Chinese-made engine, further delaying the procurement process.
The situation remains unchanged under the current government led by Paetongtarn Shinawatra, which continues to express doubts over the performance of the Chinese engine – despite its use by Pakistan’s Navy. – DSA

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