Thai Oil adds USD 1.85 billion to complete Clean Fuel Project

Thai Oil Public Company Limited (SET: TOP) has announced plans to allocate an additional THB63 billion (USD1.85 billion) towards completing its Clean Fuel Project (CFP), bringing the total investment in the project to THB205 billion (USD6.02 billion). The decision follows approval by its Extraordinary General Meeting of Shareholders and is aimed at ensuring the project’s success by 2028, after significant project delays.

The CFP, a strategic upgrade to Thai Oil’s refinery operations in Chonburi, Thailand, is designed to enhance production efficiency and support cleaner energy initiatives. Key upgrades include advanced refining technologies and the expansion of hydrocracking and hydrogen production units. Once operational, the CFP will enable Thai Oil to produce higher-value products while adhering to stricter environmental standards.

Thai Oil has secured contractors such as Samsung Engineering and Thai Engineering firms to maintain timelines, with construction expected to conclude by the third quarter of 2028. The funding for the additional investment will be sourced through a combination of equity, long-term loans, and proceeds from the company’s financial reserves.

The company has assured stakeholders that the project is aligned with its strategic vision to remain competitive in the energy market while addressing growing environmental concerns. Completion of the CFP is expected to bolster Thai Oil’s position in the global energy sector, enabling it to produce cleaner fuels and adapt to shifting market dynamics.