PTG banking on diversification strategy

PTG Energy Plc, Thailand’s second largest oil retailer by sales volume, is pushing ahead with its diversification into renewable energy and electric vehicle (EV) charging facility development projects in a move to avoid tough competition in the retail oil sector.

From waste-to-energy (WTE) and solar power projects to opportunities in biofuel and EV-related businesses, all are on the company’s to-do list, according to PTG executive vice-president Rangsun Puangprang.

PTG is awaiting final approval from the Energy Regulatory Commission after winning an auction to develop a 6-megawatt WTE project in Songkhla municipality.

It is among 11 winners awarded WTE projects in nine provinces under the Quick Win concept, which puts all projects on a fast track for development by clearing some legal requirements, including a lengthy process to gain permission from various state agencies.

The company is also installing rooftop solar panels at 33 of its petrol stations to produce electricity.

Mr Rangsun said the next step is the company is targeting prospective corporate clients that are interested in rooftop solar installation.

A business plan is slated for later this year, he said.

In the biofuel segment, PTG plans to invest in an ethanol production facility, with a capacity of 500,000 litres per day at a cost of 200 million baht, Mr Rangsun said.

It wants to sell gasohol E20, a mix of 20% ethanol and 80% unleaded gasoline 95, as the government is preparing to make E20 the primary fuel for motorists in July this year.

This scheme is projected to increase PTG’s demand for ethanol to between 800,000 to 1 million litres per day, up from 500,000 litres a day at present.

Details of the company’s ethanol project are expected by the second quarter this year, he said.

Mr Rangsun said PTG is also teaming up with a business partner to conduct a feasibility study on two types of fast charging facilities to serve large electric trucks.

The study includes locations for charging outlets and sub-stations on the state power grid as the technology requires a high volume of electricity.

The investment cost for each ultrafast charging facility is estimated at 40-50 million baht, while a fast charging facility requires around 3-4 million baht.

Mr Rangsun expects the EV charging business to begin to take shape at the end of this year.