SET-listed energy conglomerate Bangchak Corporation (BCP) is growing its new business in the energy logistics sector by supplying liquefied natural gas (LNG) to factories located outside the service area of onshore gas pipeline networks.
The business also facilitates the use of LNG as a fuel, which is considered cleaner than coal and oil.
BCP has sold 10,000 tonnes of LNG to entrepreneurs after starting operations 18 months ago, said Chaiwat Kovavisarach, president and chief executive of BCP.
"We can earn revenue in just 18 months. This business will drive Bangchak Group's earnings before interest, taxes, depreciation and amortisation to 100 billion baht by 2030, up from 37.7 billion baht in September this year," he said.
The company runs the business through BTSG Co, a joint venture between BCP and Thai Special Gas, a local industrial gas supplier.
Mr Chaiwat said the LNG transport service has potential because it offers gas as an alternative fuel to small and mid-sized factories that mainly use coal, fuel oil and diesel to produce heat during their manufacturing processes.
At present, only large power plants and factory operators are able to buy gas supplied through the pipelines.
"In terms of the environment, this business will accelerate demand for gas to replace coal and oil," Mr Chaiwat said.
BTSG plans to build a facility to support its LNG transport business next year.
Earlier this year, BCP allocated 1.6 billion baht to invest through Bangkok Fuel Pipeline and Logistics Co (BFPL) for the right to manage gas pipelines and gas receiving terminals of Fuel Pipeline Transportation Ltd.
BFPL provides a service to transport oil, including gasoline and diesel, through pipelines from Bangchak and other customers to an oil terminal in Ayutthaya's Bang Pa-in district and to aviation fuel depots at Suvarnabhumi and Don Mueang airports.
Another new business for the company is a battery service facility run by Winnonie Co, a subsidiary of BCP.
