Thailand’s state-owned oil conglomerate, PTT Plc, plans to invest at least Bt3 billion (about US$100 million) to expand its retail oil business network in Southeast Asia in the next three years, according to a senior executive.
Sarun Rungkasiri, PTT Senior Executive Vice President, said the company’s regional retail oil business will focus on opening at least 60 gas stations in the Lao PDR, 45 each in Cambodia and Myanmar and 130 in the Philippines.
PTT is keen on penetrating the Myanmar market now that foreign investment conditions are more flexible, he said, adding that the firm will soon set up a subsidiary company there to promote sales of oil and lubricant products.
The company’s lubricants are already sold through domestic dealers and its market share is currently ranked third in Myanmar.
Sarun said PTT’s expansion into neighboring countries is necessary in light of increasing oil consumption in the region and the coming ASEAN Economic Community in 2015.
He added that PTT will collaborate with Malaysia’s Petronas and South Korea’s S-Oil Corp in jet fuel distribution in the region with an initial focus on Thailand, South Korea, Malaysia, Cambodia and the Philippines.
Accounting transfers will be available for commercial airlines that fill jet fuel with the three companies, he said.
In the domestic market, Saran said PTT will invest Bt3 billion next year to improve PTT filling stations throughout the country and build a new oil tank farm to increase the legal requirement of oil reserves from 5 percent to 6 percent given Thailand’s higher consumption by 3-4 percent next year.