SET-listed petroleum retailer PTG Energy Plc plans to expand its capacity of pure biodiesel (B100) from 450,000 litres per day to 600,000-700,000 litres in the third quarter of 2019.
PTG Energy forecasts local demand for biodiesel to grow significantly as the government promotes more combinations with retail diesel, which uses B7 (7% biodiesel) for general vehicles and B20 (20% biodiesel) for buses and trucks.
President and chief executive Pitak Ratchakitprakarn said biodiesel is an alternative energy the government is keen to support to promote local consumption.
In 2017, PTG joined Tha Chang Industry Group (TCG), a leading palm oil producer, to develop the country's first integrated palm oil complex.
PTG set up a subsidiary, PTG Green Complex Co, 45% owned by TCG, with PTG holding 40% and third-party firms controlling the rest.
Mr Pitak says the government is keen to support biodiesel. Pattharachai Prichaphanit
PTG invested 4.8 billion baht in a project on 1,000 rai in Bang Saphan Noi district, Prachuap Khiri Khan, comprising a biodiesel facility producing 450,000 litres per day and cooking oil (palm olein) production of 200,000 litres per day.
Mr Pitak said PTG plans to expand its petrol stations to 2,000 this year from 1,884 as of 2018.
In 2019, PTG expects sales volume of its oil business to rise by 16-20% from 3.921 billion litres in 2018.
For its LPG business, PTG expects to increase sales volume by 55-60% from 98 million litres.
Mr Pitak sees global crude oil prices in 2019 remaining at US$60-65 per barrel.
"Factors to pressure the volatile oil prices are the global economy and political tensions, especially the US-China trade war," he said.
Rangsun Puangprang, executive vice-president, said PTG allocated a budget this year of 3.5 billion baht for expansion of both oil and non-oil units.
Of the total budget, 2.5 billion baht has been set aside for oil and oil-related businesses, while the remaining 500 million baht goes to non-oil business, including renewable energy.
Some 500 million baht is for new merger and acquisition deals in the near future.
Moreover, PTG plans to install solar rooftops at its 200 petrol stations in 2019.
PTG started the business in 1988 with the former name Paktai Chueplerng Co to operate tank farms and distribute gas for communities, fishing industries and factories, starting in the southern region.
The name was later changed to PTG Energy Plc, which shifted to providing ready-made gas under the PT brand.
It has two tank farms: Chumphon Tank Farm in Chumphon and Mae Klong Tank Farm in Samut Songkhram.
Mr Pitak expects 2019 revenue to grow by 35-40% year-on-year, thanks to the business expansion planned for both oil and non-oil units.
For last year, PTG posted revenue of 108 billion baht, up 27.4%, while net profit was 624 million baht, down 31.7%.