This is the second of a two part report on Thailand. Part one can be viewed here.
Growing Energy Networks Throughout Asia
PTT’s carefully managed expansion program has seen Bangkok’s CNG refuelling network grow from just 1 station in 2001 to more than 100 at the beginning of 2007, exceeding initial projections by more than 30%. By 2011, this number is expected to increase to more than 300 stations.
This growth has supported the gradual expansion of natural gas distribution networks throughout Bangkok, making natural gas available for domestic and industrial use and in turn, providing fuel for economic growth on a local and national level.
To facilitate further growth, PTT is currently establishing liquefied natural gas (LNG) installations to provide natural gas for regional areas not supported by piped natural gas. The first of these installations will become operational during the course of 2007, increasing economic prospects for regional areas in Thailand.
This pattern is typical throughout Asia, with natural gas vehicles stimulating development in cities in India, China, Malaysia, Indonesia, Pakistan, Myanmar, Iran, Egypt, Bangladesh, UAE and, to the north, Russia, Ukraine, Armenia and more.
This growth throughout the region is creating ‘blue corridors’ of NGV refuelling networks across and between countries.
Making it Easy
Part of the success of the NGV programs in Thailand is due to the creative funding models established for fleet and vehicle owners. No less than eight government and privately owned banks currently offer loan and payment facilities to enable owners to absorb the upfront cost of conversion or natural gas vehicle/engine purchases.
Fuel cost savings of around 50% ensure a ‘payback’ in some cases of less than 12 months. With innovative and coordinated card payment systems, many drivers are finding the transition from diesel or gasoline to natural gas financially favourable from day one.
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Price
relativity ensures economic advantages for drivers of natural gas vehicles in
Thailand. (Source. PTT PLC).
Current status of NGV in Thailand
Thailand currently has 104 CNG stations in operation with 90 more under construction There are almost 26,000 NGVs on Thailand’s roads, 10% of which are replacing or supplementing diesel fuel. In 2006, the country consumed 11 MMSCFD of natural gas for transport use, equivalent to 114 million liters per year of gasoline.
CNG pricing is set in Thailand to maintain price advangages over other fuels. At present CNG is priced at 8.50 baht/kg. On an energy-equivalent basis, CNG costs:
29% of 95 Gasoline price (25.59 baht/litre)
30% of 91-gasoline price (22.14 baht/liter)
35% of diesel price (24.14 baht/liter)
67% of LPG price (9.40 baht/liter).
Ceiling prices have also been set to ensure that relativity does not go above 55% of the unleaded regular (ULR) price, rising to 60% in 2008 and 65% in 2009.
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