Thai Oil to invest billions in Clean Fuel Project

Thai Oil Pcl, one of Thailand’s major oil refineries and a subsidiary of PTT Pcl, plans to invest USD 5 billion over the next five years to boost its oil refining capacity in Sriracha from 275,000 barrels per day (bpd) to 400,000 bpd. Thai Oil CEO Atikom Terbsiri said that 80% of this budget will go towards Thai Oil’s Clean Fuel Project or CFP, while the rest will be spent to improve other refinery-related infrastructure. He added that the final decision will be made in the fourth quarter.

The Clean Fuel Project is currently in the basic design phase. The engineering design is expected to be completed by the end of the year, at which time bidding for the construction will be open.

Thai Oil will spend around BHT 40-50 billion (USD 1.1-1.38 billion) of its cash flow to fund the USD 5 billion investment over five years.

Terbsiri said that Thai Oil, which has no upstream assets, has benefitted from the recent dip in crude oil prices, resulting in an improved cash flow for the oil refinery, lower debt-to-equity ratio and easier access to loans.