SET-listed PTT Plc, the national oil and gas conglomerate, expects oil trading business volume to grow by 23% to 1,600 kilobarrels per day (KBD) by 2020, up from 1,300 KBD at the end of this year.
The expansion of petrol retailing business globally is part of PTT's strategy to avert risks of escalating competition in trading at home, according to Auttapol Rerkpiboon, PTT's chief operating officer for the downstream petroleum business group.
Mr Auttapol said rising sales are expected to come from increased demand for oil and petrochemicals in the global market.
Capacity expansion in crude oil, refined oil and petrochemical products worldwide has prompted the company to prepare trading in new products.
Mr Auttapol said the company predicts oil trading to grow by 6% to 1,700 KBD from 2020 to 2022.
He said trading in crude oil products has about a 50% share of all oil trading business, while the rest is refined oil and petrochemical products. Trading in power-related renewables such as oil palm shells will play an increasingly bigger role.
Trading in alternative products is growing fast each year because of strong economic growth in Asia, bringing the share of such products in total sales to 5%, Mr Auttapol said.
PTT's next move is to seek business opportunities in India and the Middle East. This year, fuel products from North America expanded trading in Asia to tap high demand growth, so PTT will monitor the trend to see if the company can take advantage.
Mr Auttapol said PTT began focusing decades ago on exports and imports of oil-related products, while "out-out" oil trading -- in which PTT acts as middleman for transactions between two external countries -- was at a slight volume.
Auttapol: Renewables to play bigger role
But this year's out-out fuel trade made up nearly 40% of total sales because of rising demand in Asia. Mr Auttapol said the proportion between out-out trade and import-export could be 50:50 within 2020.
During the last decade, PTT has set up representative offices in Singapore, China, London, Dubai and Indonesia.
In the longer term, PTT hopes to launch more specialty products in the local market.
Mr Auttapol said PTT is looking to enhance procurement quality to get better products into distribution in the Thai market. The measure is part of a plan to survive intensifying competition.
The growth of new businesses is meant to complement PTT's existing push for greater efficiency and cost cutting.
PTT shares closed yesterday on the Stock Exchange of Thailand at 438 baht, down two baht, in heavy trade worth 2.02 billion baht.