BCP in B1.6bn green pipeline deal
Move aims to reduce costs, emissions
Mostly state-owned Bangchak Corporation Plc (BCP) has paid 1.6 billion baht for the right to carry its fuel through a pipeline network overseen by Fuel Pipeline Transportation Co (FPT) to reduce transport costs and support a campaign against climate change.
“This will not only reduce costs and increase revenue, but also reduce carbon emissions from vehicle transport,” said Chaiwat Kovavisarach, BCP president and chief executive.
“It also marks our first step of investment towards low carbon businesses.”
Bangchak Group has set 2050 as the deadline to achieve its net-zero goal, a balance between greenhouse gas emissions and absorption.
BCP signed a fuel transport rights deal with FPT, a subsidiary of SET-listed
Bangkok Aviation Fuel Services, on Dec 30 last year.
BCP, which owns a 3.63% share in
FPT, will operate the fuel transport through its wholly owned Bangkok Fuel Pipeline and Logistics Co.
The company plans to transport gasoline and diesel from its refinery facilities in Bangkok’s Phra Khanong district and from its customers in the capital to its oil terminal in Ayutthaya’s Bang Pa-in district.
Aviation fuel is also scheduled for transportation to oil depots at Suvarnabhumi and Don Mueang airports.
BCP believes the acquisition of the fuel transport rights will strengthen and stabilise its businesses.
Bangkok Fuel Pipeline and Logistics has been granted the right to transport fuel along a network of 99-kilometre pipelines for 20 years, covering 69km linking Bangkok and Bang Pa-in district, and 30km stretching to the two airports and Bangchak Biofuel Co.
According to BCP, this investment in fuel logistics will make it easier for the company to calculate costs and better control oil transportation which was previously performed by trucks.
Road accidents and carbon dioxide emitted from the trucks will no longer be a worry.
BCP is among the energy companies that have joined the government in pledging to curb carbon dioxide emissions.