NGV Global

Bangkok, Thailand

Thai motorists have increased choice for compressed natural gas (CNG)
refueling, following the opening of the first retail dispensers by
Bangchak Petroleum in Bangkok in cooperation with energy giant PTT Plc. PTT is
also making arrangements with other station operators to operate CNG
dispensers at non PTT stations. The opening ceremony was presided over
by Energy Minister Viset Choopiban. Also attended the ceremony were
Bangchak president Anusorn Saengnimnuan, PTT president Prasert
Boonsampan and top officials from the Energy Ministry.

Bangchak will open two more stations, in cooperation with PTT to CNG
by the end of this month and will have 20 sites operational by the end
of this year, twice as many as were originally planned. The company
expects to have the average sales of 200,000 kilograms of NGV per
station per month or 2.5 – 3 million kilograms per year.

“This project is a collaboration between PTT and Bangchak where PTT has
funded the entire investment for all stations, which have been built on
Bangchak land, on the condition that the two companies share the
profits. Under this project, Bangchak will enjoy marketing margin of
more than two baht per kilogram of NGV. It is expected that this move
will receive a very well response from NGV users which will help
increase the number of NGV users for Bangchak as well,” Anusorn said.

Meanwhile, PTT plans to expand its NGV stations across the kingdom
aimed to encourage more motorists and drivers of transport vehicles to
turn to use the cheaper alternative energy, said PTT president Prasert
Boonsampan.

PTT would speedily expand its NGV stations to cover all major highways
and routes across the country by the end of this year. This is to
particularly serve drivers of transport vehicles, including trucks, as
well as general motorists.

Apart from speeding up the construction of its new NGV stations, PTT
has teamed up with Bangchak and is also negotiating with Shell
(Thailand) Ltd., Esso (Thailand) Plc, and Petronas to set up NGV
filling stations at some of their petrol services stations located in
Bangkok and the surrounding area. An MOU is expected to be finalized
with Petronas soon. PTT plans to have CNG available at 740 stations by
2010.

This would help cut fuel imports by 4,062 million liters per year, representing about 20 percent of the total fuel demand.

In addition, PTT also joined forces with LPG service stations in order
to install CNG dispensers at such stations which currently open 21
stations.

In order to promote the use of NGV, PTT will financially support the
installation of NGV equipment in more of 5,000 participating vehicles
(10,000 Baht per vehicle), while the Government Savings Bank will
provide low-interest loans to campaign participants for the
installation of NGV equipment. For taxi drivers, PTT also financially
support the conversion from LPG to NGV in taxis from six participated
taxi companies while new taxi who wants to convert their equipment will
have to pay only 10,000 baht. As for transport vehicles such as bus and
truck, PTT also plans to lend them instead of letting them to borrow
from banks which the company is working on details and expected to be
finalized by the end of this month.

According to Prasert, apart from providing financial support for the
installation of NGV equipment, PTT will continue to stabilise NGV
prices (8.50 baht per kilogram) so that it remain lower than other
types of fuel and will continuously increase the number of its NGV
service stations in Bangkok and neighboring provinces. The number of
PTT’s NGV service stations is expected to reach around 100 stations by
year-end.

Despite the oil prices likely to increase, PTT insists to keep the
price of NGV at not more than 50 per cent lower than that of diesel.