Thailand's fourth-largest oil retailer, Shell Co of Thailand, earmarked 2.4 billion baht to invest in overhauling facilities and marketing from next year to 2016 in a bid to maintain its competitiveness amid stiff competition.
Asada Harinsuit, chairman of the Dutch-owned company, said 1.5 billion baht will be spent on marketing its lubricants and related products, while 900 million baht will go to renovate petrol stations and build new stations.
Executive director Troy Chapman said Shell will focus on lubricants to tap higher demand for premium products in line with Thailand's development as a regional land transport hub.
He said lubricants have been developed to serve the premium market by using high technology in their production.
The huge marketing budget is essential for Shell to achieve its target, he said.
Early this year, Shell launched its premium lube oil for motorcycles, with plans to develop the product to serve the market as it is confident in its positioning despite severe competition in petroleum products.
Retail business executive director Grant McGregor said Shell plans to expand its petrol stations by 10% next year from 550 to about 600.
The renovation of petrol stations will cover all facilities including non-oil business facilities.
Mr McGregor said competition in the retail oil sector has been high for several years, but competition is good in terms of benefits to consumers.
Major oil retailers have expanded businesses aggressively led by PTT Plc, Bangchak Petroleum Plc, PTG Energy Plc and Susco Co.
Mr Asada said the company is also looking for an opportunity to enter the liquefied natural gas (LNG) business as Thailand needs to find alternative fuels to secure its energy resources.
"Oil and gas resources in Thailand will become depleted in the near future, so new types of fuel are crucial, and Shell is ready to work on that business," said Mr Asada.
Shell has more than 50 LNG fleets worldwide and has LNG production bases in Qatar, Indonesia, Malaysia and Australia.
According to Thailand's 2010 power development plan, demand for natural gas will rise to 9,000 million standard cubic feet per day in 2030 from 4,200 now. The amount will exceed domestic resources and production.