SET-listed Scan Inter Plc (SCN), a provider of integrated natural gas products and services, has signed a long-term agreement to buy 35,000 to 50,000 tonnes of carbon dioxide a year from Praxair Inc, a gas supplier for industry.
The gas will be used to feed SCN's natural gas improving process.
Littee Kitpipit, SCN's executive administrative director and marketing director, said the company secured a supply of carbon dioxide for up to 15 years for its major clients such as PTT Plc.
"PTT will receive natural gas from the Gulf of Thailand for its station in Sam Khok, where SCN is preparing gas for the execution of natural gas quality improvement, which needs about 8% of carbon dioxide to be processed," Mr Littee said.
SCN expects to start generating revenue of up to 200 million baht by October.
The company forecasts 2015 revenue growth of 20% to 2.5 billion baht.
"For 2015, SCN's revenue growth will come largely from CNG distribution and retail business, with which we have expanded our gas-supplying business to manufacturers," Mr Littee said.
SCN has already secured revenue by sealing a deal with five leading manufacturers to supply gas for them including Kimberly-Clark Thailand and Singha Corporation.
The expected growth from supplying CNG to the industrial sector is huge, as the gas can help industrial users pay 10% less in energy costs.
Vipa Jinda, managing director of Praxair (Thailand), said the company would secure up to 50,000 tonnes of carbon dioxide each year for up to 15 years.
Praxair is a major gas producer and supplier globally, with headquarters in Connecticut. Its Thai operation is based mostly on providing gas supply for gas separation in Rayong province.
SCN shares closed yesterday on the SET at 12.40 baht, up 50 satang, in trade worth 251 million baht.