Bangchak to double E20 fuel pumps next year

GASOHOL

Bangchak Petroleum Plc (BCP) plans to double its gasohol E20 dispensers to 260 pumps nationwide by the end of next year, says president Anusorn Sangnimnuan.

E20 demand has improved this year in line with Thai carmakers jumping into the E20-compatible market, he said.

"We want to maintain our leading role in alternative fuels in the country that we started in 2005," he said. "We were the first to phase out pure petrol from most of our Bangchak service stations and we also introduced E85 with PTT in 2007."

Bangchak plans to spend 6 billion baht to develop renewable and alternative fuel projects. Projects in the pipeline include a 100-megawatt solar power plant and an ethanol factory.

The company has set aside 1.5 billion baht for developing service stations and upgrading facilities.

"We are now selecting the suppliers for solar cell equipment and talking to local cassava-based ethanol factories where we hope to acquire the majority of shares. We hope a deal will be finalised by year-end," said Dr Anusorn.

According to the Department of Energy Business, as of October, there were 19,100 pump stations with 237 providing E20. Bangchak operates 1,057 stations with 860 providing ethanol-based petrol.

Bangchak is also considering increasing daily oil refining output to 100,000 barrels in the second half of next year from 80,000. The additional output would serve rising demand driven by a global economic recovery.

The company expects its earnings before interest, tax, depreciation and amortisation this year will rise to 8 billion baht from 6.6 billion in the first nine months.

"Our petroleum quality improvement project started last month just as global demand started to improve," he said.

He also said BCP's gross refinery margin next year would drop to US$4-5 per barrel from an $8 estimate this year.

BCP shares closed yesterday on the Stock Exchange of Thailand at 14 baht, down 40 satang, in trade worth 78.9 million baht.