Esso (Thailand), an affiliate of the Texas-based Exxon Mobil Corporation, targets sales growth of 4-5% next year, up from an estimated 3% this year, on the introduction of E20 ethanol.
Yodpong Sutatham, the director and retail sales manager, said the low sales growth this year is due primarily to the weak domestic economy and the lack of E20 at Esso stations.
"Growth in the energy sector is tied to overall economic growth. With the domestic economy showing signs of improvement, Esso expects to grow along with it. E20 presents the highest growth area," he said.
Mr Yodpong said demand for E20 in Thailand has tripled and is expected to increase by no less than another 100%.
The launch of E20 will enable Esso to secure more market share in the retail fuel business, where it occupies third place after PTT Plc and Bangchak Petroleum Plc.
"Esso (Thailand) has been slow to launch E20 fuel due to the company's time-consuming quality control process. Despite that, we're sure it will be as good, if not better, than that of our competitors," said Mr Yodpong.
Initially, E20 will be available in Esso stations near the company's fuel depot in western Bangkok, then at 300 Esso stations nationwide by the end of next year.
Overall, petrol accounts for 30% of Esso's Thai sales, with the rest being diesel.
By the end of next year, Esso expects petrol to comprise 15% of sales.