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.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment