BANGKOK, Dec 19 – The government’s suspension of its subsidy for liquefied petroleum gas (LPG) resulting in a higher LPG price by Bt.50/kg/month, will benefit PTT , Thailand’s state oil conglomerate, according to an executive of the firm.
Surong Bulakul, PTT Chief Finance Officer, said the government had capped the LPG price at US$333/tonne as against global prices which are much higher.
The domestic LPG price hike will relieve the Oil Fund’s subsidy burden and reduce LPG import, he said, adding that PTT has imported 150,000 tonnes of LPG every month while the existing storage capacity is only 120,000 tonnes/month.
He said PTT needs to speed up construction of LPG storage facilities to cope with escalating demand and consumption.
PTT must also install pipelines in Thailand’s North and Northeast for gasoline and natural gas for vehicles (NGV), he said.
Regarding PTT’s foreign investment as part of preparations for the ASEAN Economic Community (AEC) in 2015, Mr Surong said some projects include opening filling stations in Laos, Cambodia and Myanmar, and investment in a coal mining project in Indonesia.