H.E. Dr. Wannarut Channukul, Minister of Energy, today inaugurated Thailand’s first NGV mother station under private investment. Located at Tambon Chiang Rak Noi, Amphoe Sam Khok, Pathum Thani province, the station is operated by Sakol Energy Co., Ltd., which pioneers NGV distribution on behalf of PTT Plc.
The minister of energy said that with the spiraling NGV demand, PTT had been expanding the capacity of existing mother stations while securing land for additional mother stations to meet the public demand for the increasingly popular fuel. At the same time, the ministry had supported PTT’s invitation for private investment in new mother stations to add to PTT’s tally and raise NGV supply. With a distribution capacity of 250 tons/day, Sakol Energy’s station is Thailand’s first private NGV mother station, supplementing PTT’s distribution capacity and transmission volume for 19 daughter stations in Bangkok, Nonthaburi, Pathum Thani, and Ayutthaya.
Mr. Prasert Bunsumpun, PTT’s Chief Executive Officer and President, added that the private sector’s acceptance of PTT’s invitation to set up mother stations is regarded as a milestone step for private participation in NGV business development. For this would not only raise PTT’s own efficiency of promoting NGV in the transport sector, but also ease motorists’ NGV refueling queues. Today, PTT commands a total of 18 mother stations, which supply the fuel to daughter stations nationwide with a total distribution capacity of 3,600 tons/day. Combined with the distribution capacity of its 78 conventional stations, its total capacity now stands at 7,750 tons/day. The national oil company’s current NGV sales volume amounts to about 3,900 tons/day. Currently, there are 358 NGV stations operating nationwide. According to the plan, PTT targets to increase the number of NGV stations by the end of this year.
Thursday, November 19, 2009
Thursday, November 12, 2009
PTTCH raises revenue goal to B150bn
PTT Chemical Plc, the country's largest olefins maker, has increased its revenue forecast next year to 150 billion baht from an earlier estimate of 120 billion,said Veerasak Kositpaisal, president and CEO.
The revision is due mainly to petrochemical product prices rising to US$1,200 per tonne, higher than its earlier prediction of $800 to $900 a tonne.It also expects average crude prices will not exceed $80 per barrel.
The company will also have additional polymer production plants and an extra 1 million tonnes of olefins from a new cracking unit that will start operation in the first quarter of next year.
The new plants will gradually start producing 400,000 tonnes of linear lowdensity polyethylene, 300,000 tonnes of low-density polyethylene and 500,000 tonnes of high-density polyethylene.
"Luckily, these new plants are not included in the 76 affected projects suspended by the court in Map Ta Phut, so they can go on as scheduled," he said.
Despite a new polymer plant opening in the Middle East, which will add more than 5 million tonnes to the market next year, a revived regional economy should absorb the new supply, he said.
PTTCH signed a memorandum of understanding yesterday with SMC Cor-poration Ltd, a local moulding machinery producer, in a bid to co-develop high-efficiency plastic pallets.
The partners will co-develop plastic products to better serve demand and seek ways to cut losses in the production process.
"Using their plastic moulding machinery will accelerate the development of products to meet our clients' requirements," said Mr Veerasak.
"Instead of starting a price war during fierce competition, research and development is a better option for sustainable business development."
PTTCH reported lower third-quarter sales by 1% to 23.46 billion baht from 23.64 billion a year earlier, while net profit decreased 43% to 2.82 billion (1.88 baht a share) from 4.92 billion baht (3.29 baht a share) in line with sliding petrochemical prices.
For the nine-month period, net profit was 4.56 billion baht (3.05 baht a share),a drop from 15.92 billion (10.94 baht a share) in the same period last year.Despite the decline, its shares only dropped 75 satang to 72.5 baht yesterday in trade worth 448.38 million.
PTTCH's parent company, PTT Plc,reported a 5% drop in its third-quarter net profit to 16.99 billion baht, in line with forecasts, due to lower contributions from its exploration and refinery businesses.
Nine-month consolidated net profit was 44.37 billion baht (15.69 baht a share), a decline of 40% from 73.9 billion (26.21 baht a share) in the same period last year.
Results in the fourth quarter are expected to be hit by lower earnings from subsidiary PTTEP due to an oil leak at Montara field near Australia, analysts said. Next year's outlook will also depend partly on how the government resolves the dispute over the Map Ta Phut industrial estate, where the PTT Group is a major investor.
Shares of PTT closed yesterday at 250 baht, up two baht, in trade worth 1.73 billion baht, while PTTEP closed at 144 baht, up 4.5 baht, in trade worth 1.8 billion baht.
The revision is due mainly to petrochemical product prices rising to US$1,200 per tonne, higher than its earlier prediction of $800 to $900 a tonne.It also expects average crude prices will not exceed $80 per barrel.
The company will also have additional polymer production plants and an extra 1 million tonnes of olefins from a new cracking unit that will start operation in the first quarter of next year.
The new plants will gradually start producing 400,000 tonnes of linear lowdensity polyethylene, 300,000 tonnes of low-density polyethylene and 500,000 tonnes of high-density polyethylene.
"Luckily, these new plants are not included in the 76 affected projects suspended by the court in Map Ta Phut, so they can go on as scheduled," he said.
Despite a new polymer plant opening in the Middle East, which will add more than 5 million tonnes to the market next year, a revived regional economy should absorb the new supply, he said.
PTTCH signed a memorandum of understanding yesterday with SMC Cor-poration Ltd, a local moulding machinery producer, in a bid to co-develop high-efficiency plastic pallets.
The partners will co-develop plastic products to better serve demand and seek ways to cut losses in the production process.
"Using their plastic moulding machinery will accelerate the development of products to meet our clients' requirements," said Mr Veerasak.
"Instead of starting a price war during fierce competition, research and development is a better option for sustainable business development."
PTTCH reported lower third-quarter sales by 1% to 23.46 billion baht from 23.64 billion a year earlier, while net profit decreased 43% to 2.82 billion (1.88 baht a share) from 4.92 billion baht (3.29 baht a share) in line with sliding petrochemical prices.
For the nine-month period, net profit was 4.56 billion baht (3.05 baht a share),a drop from 15.92 billion (10.94 baht a share) in the same period last year.Despite the decline, its shares only dropped 75 satang to 72.5 baht yesterday in trade worth 448.38 million.
PTTCH's parent company, PTT Plc,reported a 5% drop in its third-quarter net profit to 16.99 billion baht, in line with forecasts, due to lower contributions from its exploration and refinery businesses.
Nine-month consolidated net profit was 44.37 billion baht (15.69 baht a share), a decline of 40% from 73.9 billion (26.21 baht a share) in the same period last year.
Results in the fourth quarter are expected to be hit by lower earnings from subsidiary PTTEP due to an oil leak at Montara field near Australia, analysts said. Next year's outlook will also depend partly on how the government resolves the dispute over the Map Ta Phut industrial estate, where the PTT Group is a major investor.
Shares of PTT closed yesterday at 250 baht, up two baht, in trade worth 1.73 billion baht, while PTTEP closed at 144 baht, up 4.5 baht, in trade worth 1.8 billion baht.
PTT searches for NGV station partners
Energy conglomerate PTT Plc still hopes private partners will join its investment in NGV service stations.
A massive 9 billion baht is required for investment even though NGV (natural gas for vehicles) demand is slowing, said chief executive Prasert Bunsumpun.
The company has already invested 16 billion baht in service facilities since natural gas started to gain popularity three years ago owing to the surge in global crude prices.
He said NGV subsidies have left a 17-billion-baht loss for PTT, expected to increase to 25 billion baht by the middle of next year. A fixed price of 8.5 baht per kg is 6 baht less than the appropriate price, he said.
There are 358 NGV service stations operating nationwide -40 owned and operated by private companies and the rest by PTT.
"We hope to see 50 more stations and investment from private companies by the end of this year," said Mr Prasert.
However, NGV sales have slid this year as crude prices receded from their highs last year.
Though crude prices rose to $83 for an eight-month high earlier this month,it was not enough to boost demand.
PTT reported NGV vehicles running in Thailand at 157,000 units, an increase of 30,000 units from 2008. In 2008,72,000 vehicles shifted from petrol or diesel to run on NGV.
NGV sales volume rose by 25% to 3,900 tonnes per day from 3,000 tonnes in 2008.
PTT is aiming for the number of NGV stations to rise to 600 by the end of 2011.
"As floating NGV prices are not yet a reality, we hope some private partners can shoulder some of the investment costs," he said, insisting there is a high gross retail margin in NGV for interested partners.
The company officially opened its first CNG (compressed natural gas) station owned and operated by a private investor yesterday at Pathum Thani. PTT is also seeking CNG private partners.
PTT shares closed on the Stock Exchange of Thailand index yesterday at 252 baht, up nine baht, in trade worth 1.4 billion baht.
A massive 9 billion baht is required for investment even though NGV (natural gas for vehicles) demand is slowing, said chief executive Prasert Bunsumpun.
The company has already invested 16 billion baht in service facilities since natural gas started to gain popularity three years ago owing to the surge in global crude prices.
He said NGV subsidies have left a 17-billion-baht loss for PTT, expected to increase to 25 billion baht by the middle of next year. A fixed price of 8.5 baht per kg is 6 baht less than the appropriate price, he said.
There are 358 NGV service stations operating nationwide -40 owned and operated by private companies and the rest by PTT.
"We hope to see 50 more stations and investment from private companies by the end of this year," said Mr Prasert.
However, NGV sales have slid this year as crude prices receded from their highs last year.
Though crude prices rose to $83 for an eight-month high earlier this month,it was not enough to boost demand.
PTT reported NGV vehicles running in Thailand at 157,000 units, an increase of 30,000 units from 2008. In 2008,72,000 vehicles shifted from petrol or diesel to run on NGV.
NGV sales volume rose by 25% to 3,900 tonnes per day from 3,000 tonnes in 2008.
PTT is aiming for the number of NGV stations to rise to 600 by the end of 2011.
"As floating NGV prices are not yet a reality, we hope some private partners can shoulder some of the investment costs," he said, insisting there is a high gross retail margin in NGV for interested partners.
The company officially opened its first CNG (compressed natural gas) station owned and operated by a private investor yesterday at Pathum Thani. PTT is also seeking CNG private partners.
PTT shares closed on the Stock Exchange of Thailand index yesterday at 252 baht, up nine baht, in trade worth 1.4 billion baht.
Wednesday, November 4, 2009
Oil hovers near $77 ahead of US economic reports
Oil prices hovered near $77 a barrel yesterday in Asia after a big fall the previous trading session as investors eyed upcoming figures on the US economy and a volatile dollar.
Benchmark crude for December delivery was down 11 cents to $76.89 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.
The contract fell $2.87 to settle at $77.00 on Fr iday as the dollar gained and stock markets dropped on news US consumer spending and confidence had fallen in September.
Investors will be looking to a slew of economic indicators this week for further clues about the strength of the US economic recovery. The Labour Department's October employment report will likely be the most closely watched report,but data on manufacturing, services and home sales could also move markets.
The Federal Reser ve will also comment after a two-day meeting on interest rate policy.
Oil has slumped from its 2009 high of $82 a barrel last month as the dollar reversed some of its earlier losses. The euro ro se to $1.4757 in Asian trading Monday from $1.4714 on Friday while the dollar rose to 90.15 yen from 89.67 yen.
"(Oil) prices may not retract too sharply, but the balloon of irrational exuberance has been, at least temporarily,deflated," energy consultancy The Schork Group said in a report yesterday.
Investors will also be paying attention to third quarter corporate earnings results this week. Ford Motor Co, Cisco Systems Inc, Kraft Foods Inc, Marathon Oil Corp, St arbucks Corp and Time Warner Inc are scheduled to report.
In other Nymex trading, heating oil rose 1.08 cents to $2.02 a gallon. Gasoline for December delivery gained 0.45 cent to $1.96 a gallon. Natural gas for December delivery jumped 4.3 cents to $5.05 per 1,000 cubic feet.
In London, Brent crude for December delivery was flat at $75.20 on the ICE Futures exchange.
While data released last Thursday showed the US has emerged from a prolonged recession, consumer spending,which accounts for two-thirds of the nation's economic activity, fell in September.
"I think the reality is that the economic signals out there have been mixed,' said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
Benchmark crude for December delivery was down 11 cents to $76.89 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.
The contract fell $2.87 to settle at $77.00 on Fr iday as the dollar gained and stock markets dropped on news US consumer spending and confidence had fallen in September.
Investors will be looking to a slew of economic indicators this week for further clues about the strength of the US economic recovery. The Labour Department's October employment report will likely be the most closely watched report,but data on manufacturing, services and home sales could also move markets.
The Federal Reser ve will also comment after a two-day meeting on interest rate policy.
Oil has slumped from its 2009 high of $82 a barrel last month as the dollar reversed some of its earlier losses. The euro ro se to $1.4757 in Asian trading Monday from $1.4714 on Friday while the dollar rose to 90.15 yen from 89.67 yen.
"(Oil) prices may not retract too sharply, but the balloon of irrational exuberance has been, at least temporarily,deflated," energy consultancy The Schork Group said in a report yesterday.
Investors will also be paying attention to third quarter corporate earnings results this week. Ford Motor Co, Cisco Systems Inc, Kraft Foods Inc, Marathon Oil Corp, St arbucks Corp and Time Warner Inc are scheduled to report.
In other Nymex trading, heating oil rose 1.08 cents to $2.02 a gallon. Gasoline for December delivery gained 0.45 cent to $1.96 a gallon. Natural gas for December delivery jumped 4.3 cents to $5.05 per 1,000 cubic feet.
In London, Brent crude for December delivery was flat at $75.20 on the ICE Futures exchange.
While data released last Thursday showed the US has emerged from a prolonged recession, consumer spending,which accounts for two-thirds of the nation's economic activity, fell in September.
"I think the reality is that the economic signals out there have been mixed,' said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
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