SET-listed Power Solution Technologies (PSTC), a provider of clean energy solutions and construction services, is expecting higher sales of compressed natural gas next year because of environmental concerns and factory operators' desire to cut costs.
The company buys liquefied natural gas from PTT Plc and turns it into compressed natural gas before supplying it to customers via trucks.
Gas is considered to be cleaner than other fossil fuels such as coal and oil.
Piyapat Suwannasang, acting chief executive of PSTC, expects its gas sales to grow by 27% to 1 million tonnes next year, up from 782,000 tonnes in 2022. The volume is forecast to increase to 2 million tonnes in 2024 and 4 million tonnes in 2025.
Many factories want to save energy costs by using gas, but they are located outside of the service areas of gas pipeline networks. This has led them to depend on more expensive fuel oil and liquefied petroleum gas, or cooking gas, as their main fuels.
Demand for fuel in the industrial sector is expected to reach 138 million metric British thermal units this year, with cooking gas, fuel oil and compressed natural gas making up 19.9%, 14.1% and 66% of the fuels, respectively.
This gives PSTC an opportunity to sell more compressed natural gas as it can replace other fuels.
Sales of compressed natural gas are part of the company's efforts to earn more revenue.
PSTC recorded losses of 1.01 billion baht, 671 million baht and 105 million baht in 2020, 2021 and the first nine months of this year, respectively, according to the Stock Exchange of Thailand.
The losses partly resulted from high expenses in its biomass and biogas businesses, which have been recently divested.
In the construction sector, the company was awarded a contract by PTT Plc to build a gas separation plant called Unit 7. It plans to secure more construction projects in government auctions next year.
In 2023, PSTC will also earn money through its subsidiary Thai Pipeline Network, which operates a 342-kilometre gas pipeline from Saraburi's oil depot to Khon Kaen. The facility will start operations in the first quarter of next year.
In the power sector, Ms Piyapat said the company will increase electricity generation capacity from its solar power business to 5.2 megawatts early next year, up from 3.7MW at present.
The company installs rooftop solar panels for its customers.
