SET-listed energy conglomerate Bangchak Corporation is venturing into retail sales of liquefied natural gas (LNG) to truck drivers by taking advantage of the limitations of other alternative fuels in the market, notably compressed natural gas (CNG) and batteries.
The company announced the plan after recently opening an LNG filling station in Chon Buri, becoming the first LNG retailer in Thailand to sell LNG to motorists.
The facility is located inside Bangchak's petrol station in Laem Chabang district.
Bangchak expects truck drivers to welcome the launch because LNG does not require a long refuelling time and it enable vehicles to travel for a longer distance than CNG or electric, said Chaiwat Kovavisarach, chief executive and president of Bangchak.
Drivers are only required to install gasification equipment, costing around 400,000 baht, on their trucks to change LNG into gas.
Truck operators will break even within two years after making the investment, according to Bangchak's estimates.
Drivers who use LNG require only 10 minutes on average to refill their cars, similar to those using diesel, while CNG users need to wait for half an hour, said Bangchak, citing its latest study.
Drivers of battery-powered trucks have to wait the longest time, as it requires up to 90 minutes per charge.
In terms of fuel usage, a full tank of LNG allows drivers to travel as far as 1,400-1,600 kilometres, compared with 1,200km for diesel engines, 500km for CNG-powered trucks and just 300km for electric trucks.
Mr Chaiwat, centre, and executives of Bangchak Group at the opening of the new LNG facility in Chon Buri province.
Trucks with batteries and CNG tanks are also heavier than LNG-fuelled vehicles.
Environmentally, LNG and CNG generate less carbon dioxide than diesel.
Mr Chaiwat said Bangchak is working to encourage companies to shift from diesel and CNG to LNG. It also wants those that are considering adopting electric mobility to try LNG.
More than 40 trucks, especially those belonging to large factories, have already been equipped with the gasification technology, according to Bangchak.
The company is operating the business through its LNG business arm BTSG, a joint venture with 51% investment from Bangchak and 49% funding from Thai Special Gas, a local supplier of industrial gases.
Bangchak will evaluate the operating result of the LNG business before deciding on its expansion, said Rawee Boonsinsukh, Bangchak's executive vice-president for innovation and new S-curve business development.
LNG retail is the latest business Bangchak has diversified into, following its move to embark on energy logistics and a battery-swapping service for drivers of electric motorcycle taxis.
A LNG filling facility located at a Bangchak petrol station in Chon Buri province.
Mr Chaiwat, centre, and executives of Bangchak Group at the opening of the new LNG facility in Chon Buri province.