Alliance refining to build new oil depot

PTT Aromatics and Refining (PTTAR) is to invest 200 million baht (US$6.0 million) this year to build an additional oil depot and overhaul the administrative structure of Alliance Refining Co. (ARC), according to reports. Chainoi Puenkosoom, president of PTTAR, stated that the investment will accommodate the split of administrative control over Star Petroleum Refining (SPRC), which has been jointly run by listed PTTAR and non-listed SPRC through ARC since 1999. “The administration must be split as both will be listed on the Stock Exchange of Thailand,” Chainoi said, adding that SPRC is preparing for the listing. It was reported that SPRC itself would invest US$45 million in a jet-fuel refining unit, as its existing facility cannot produce this type of fuel. The administrative split follows the policy of PTT Group and SPRC to separate their refining business. PTT also plans to unload a part of its 36% stake in SPRC, after the latter’s listing. ARC was established in 1999 as a joint venture of SPRC and Rayong Refinery, which was renamed PTTAR. PTTAR’s refining capacity is now 145,000 barrels per day (bpd) while SPRC’s is 150,000 bpd. (June 30, 2008)