Thai PTT examines options for 2012

Thailand’s largest energy company PTT P.L.C. said it has two options following the government’s refusal of its request to delay introduction of Euro IV fuel standards on sulfur levels in fuel. The Thai government plans to enforce the Euro IV standards starting January 1, 2012 despite a request by PTT and other refiners in the country for a deferral. The new standard would cut gasoline and diesel sulfur levels to 50 parts per million (ppm) from the current 500 ppm and 350 ppm, respectively. PTT’s first option is to agree to product swaps with Thai Oil P.L.C. and Bangchak Petroleum P.L.C., which have already completed upgrading their refineries to meet Euro IV standards, while its second option is to upgrade all its facilities. PTT had wanted the deadline pushed back because it expects project costs to be lower in the future. Previously, PTT Aromatics and Refining P.L.C. (PTTAR) announced that it was suspending the Euro IV upgrade, as the move needs massive investments while the economy is in a downturn. To speed the country’s meeting of Euro IV standards, the government earlier asked PTT P.L.C. for help in purchasing the nation’s supply of tapioca chips for use in ethanol production, to which the company agreed. Its 15-year plan involves 230 billion baht (US$6.5 billion) in investment for tapioca and focuses on the creation of natural gases. The government also bought three million tons of cassava from local farmers in April, which was processed into two million tons of tapioca chips and 700,000 tons of tapioca starch, all of which were placed in government stocks. Thailand is in talks with the Chinese government and private entrepreneurs from the country, officials said, regarding purchase of the goods.(March 30/ April 7, 2009)