Thai submarine deal saga drags on as China swaps engines
Cabinet approves engine switch and timeline extension amid stalled 2017 China-Thai naval deal
Thailand’s long-running submarine drama just got another twist—with German engines scrapped, Chinese ones swapped in, and years added to the wait.
On Tuesday, August 5, Acting Prime Minister and Interior Minister Phumtham Wechayachai confirmed the Cabinet’s approval of major revisions to Thailand’s long-delayed submarine deal with China, but offered no further details, citing confidentiality.
The updated contract for the Yuan Class S26T submarine will now include a Chinese-made CHD620 diesel engine, replacing the original German MTU396 engine that became unavailable due to export restrictions. Germany halted the supply in 2021 over concerns about the deal’s military nature and its intended use, effectively freezing the project.
The agreement, originally signed in 2017 as a government-to-government arrangement between the Royal Thai Navy (RTN) and China Shipbuilding & Offshore International Co., has seen repeated delays. The latest modification also extends the construction period by a staggering 1,217 days.
According to Bangkok Post, the submarine is currently 64% complete, with 10 of 18 payment instalments—totalling 7.7 billion baht—already disbursed. The remaining 40% of the contract, worth 5.5 billion baht, has yet to be paid.
RTN Deputy Spokesperson Rear Admiral Paraj Ratanajaipan welcomed the Cabinet’s approval, stating the decision allows the navy to continue its procurement and advance its capabilities in surface, air, and underwater operations.
“The diesel-electric engine has passed extensive testing. It exceeds the performance and safety standards of the original German model and is certified by Lloyd’s Register.”
He added that the engine is already in use in submarines operated by other countries.
“We seek public confidence that the RTN will utilise this strategic asset to protect our sovereignty, safeguard maritime interests, and assist Thais in various situations.”
Phumtham refused to comment on related military procurement plans, including the Royal Thai Air Force (RTAF)’s proposed acquisition of Gripen fighter jets.
“I’m not discussing this. The armed forces are engaged in active operations. These matters are classified as government issues. I won’t speak about any military equipment.”
Further details on the submarine deal and other military requests remain under review, with no clear timeline for completion or deployment.
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