- Mekong countries to integrate transport links
- Mekong ministers aim for better connectivity, trade ties
- Asean and Norway strengthens relationship
- Energy conservation campaign planned
- Thai transport sector well prepared for AEC
- Asean needs to retain and mobilise its vast savings and surpluses
- Economic volatility tops Asean CEOs' concerns
- Mc Group sets sights on neighbouring markets in run-up to AEC
- Merck upbeat on its prospects in integrated Asean
- Envirosell offers Asean consumer insights
Published on Thursday, 17 January 2013 08:01
THE NATION January 17, 2013 1:00 am
PTT recently established two subsidiaries in Jakarta to expand sales of crude and refined oil as well as plastic pellets in Indonesia.
PTT is also in talks with Indonesia's state-run Pertamina Oil Co on investment in a petrochemical-refinery project, which the Thai energy giant expects to conclude in April or May.
Its motor-oil products will be distributed in Asean, with Myanmar as the top target market, to help achieve its 8-million-litre sales target for this year. Pailin Chuchottaworn, president and chief executive officer of PTT, Thailand's national oil and gas conglomerate, said yesterday that the two new units were PTT international Trading Co and PTT Polymer Marketing Co.
Indonesia is a key focus of PTT Group's Asean strategy
PTT supplies several hundred thousand barrels of oil daily in Indonesia, or 40 per cent of total consumption there.
PTT Exploration & Production (PTTEP) is exploring for crude oil in five or six blocks in Indonesia and operates a large coal-mining project and palm-oil business there, not to mention projects planned for the near future.
PTT Global Chemical Co (PTTGC) has agreed to conduct a feasibility study on expanding a fully integrated petrochemical complex with Pertamina.
PTTGC is one of three companies being considered for the joint-venture project, along with Japanese and South Korean energy firms. A deal is expected by April or May.
Indonesia still offers growth opportunities; while its oil-refining capacity is 1 million barrels per day, on par with Thailand, it serves a much larger population of 250 million.
Indonesia's oil refineries are mostly small-scale with capacity of about 100,000 barrels a day, which may not meet future domestic demand as consumer purchasing power increases. Thai Oil has looked into how to boost the production efficiency of those small refineries.
In Vietnam, PTT is conducting feasibility studies for oil-refinery and petrochemical complexes and is awaiting word of support from the government there.
Saran Rungkasiri, vice president of PTT's oil business, said the company's expansion in Indonesia at this stage would focus on creating brand presence for PTT motor oil and lubricants, similar to the marketing strategy for other Asean nations, before expanding into the highly competitive and highly regulated petroleum-retailing business in Indonesia.
PTT's retail business in Asean is targeting Myanmar, followed by Indonesia. PTT will need to invest about Bt2 billion to Bt3 billion in Myanmar. In three years, PTT has already secured third place in Myanmar's lubricants market. It aims to move up a place with sales of 7 million to 8 million litres per year, an increase of 5 million litres per year from 2011.
PTT has expanded its aviation-fuel business by linking with a Myanmar state enterprise. PTT is planning to open service stations, starting with Yangon, and an oil depot to support future growth for aviation fuel and refined oil.
In Thailand, PTT has developed "smart oil refuelling" technology to boost the efficiency of petrol refuelling services and facilitate management and cost accounting for its service-station operators. Basically, this technology involves a device attached to a customer's vehicle that records data such as the amount of fuel purchased. This technology can also shorten filling times by 30 per cent and help cut costs by 20 per cent.
PTT expects the technology to help expand its corporate customer base of 180,000 vehicles by 30 per cent. This year 60 of its service stations will get the system and by next year 200 stations nationwide will have it installed.
PTT will increase its E20 (20-per-cent ethanol) gasohol service stations by 250 to 900 outlets this year. In the past two months, its E20 sales have doubled or tripled. PTT expects its sales of this fuel to rise even further as many E20-compatible vehicles have not switched over to it yet.