Fuel Pipeline Transportation Co (FPT), an arm of Bangkok Aviation Fuels Service Plc, has offered to send oil through its pipeline from Ayutthaya to Lampang to replace oil trucks and help reduce carbon dioxide emitted by vehicles during transport.
The pipeline is the longest in Thailand, at a total distance of 576 kilometres.
"This pipeline could support energy security, in line with the state fuel transport infrastructure plan that promotes its use in replacing oil trucks to reduce carbon dioxide emissions," said Charoen Charusalaipong, managing director of FPT.
The pipeline, with a carrying capacity of 9 billion litres per year, was developed and operated by Northern Fuel Pipeline Transportation Co (NFPT), a subsidiary of FPT.
Total investment is valued at 9.7 billion baht.
NFPT uses technology that allows for transporting aviation fuel, diesel and gasoline in the same pipeline.
Many fuel companies are interested in this fuel transport service as an alternative to truck transport, said Mr Charoen.
"The pipeline can help reduce greenhouse gas emissions amounting to at least 30,000 tonnes of carbon dioxide equivalent per year, in addition to reducing road accidents," he said.
The Ayutthaya-Lampang route is the second-phase development of FPT's oil pipeline.
FPT started pipeline service in March 2019 by sending oil from its depot in Bang Pa-in district in Ayutthaya north to the province of Phichit through a 209km pipeline.
A 367km extension was built in the second phase, connecting Phichit and Lampang.
The company planned to start a new service in late 2020, but was forced to delay the plan due to the Covid-19 crisis.
The Ayutthaya-Lampang pipeline, which is also part of the government's strategic energy plan, is expected to support economic expansion in the future.
It has the potential to support fuel transport from Thailand to neighbouring countries, said Mr Charoen.
FPT set up a study team in 2019 to look into the feasibility of a project to extend the pipeline to Myanmar to serve growing demand for oil.
Lamphun and Tak provinces, which are west of Lampang, are targets for the extension plan.
In order to transport oil across the border, a new section of pipeline would need to be built in Tak province to connect with Mawlamyine district in Myanmar.