Thailand's PTT to invest P1.5 billion for more gas stations

MANILA, Philippines - Oil player PTT Philippines Corp. is into a P1.25-P1.5 billion local expansion that will more than double its service stations in five years.

Two new receiving terminals are also in the pipeline to improve the distribution system of the local arm of Thai oil giant PTT Public Co. Ltd. (PTTPCL).

“We plan for 15 gas stations a year for the next five years. We would like to have the best volume for the gas station, so it is around 120 at the end of next five years,” said PTT president and chief executive Wisarn Chawalitanon.

But the oil firm expects to jumpstart its five-year expansion by building 20 new stations this year.

PTT Philippines will invest P250-P300 million annually for the new gas stations, Chawalitanon said.

At the end of five years, PTT Philippines will have 130 gas stations, mostly in Luzon, from just 50 so far. To date, the company has four stations in Cebu that is serviced by the PTT Cebu Mactan Oil Depot and Terminal.

The retail network expansion will allow the company to cater to a projected increase in demand. It is also in line with plans of the head office, which is poised to improve its Philippine operations.

Chawalitanon said the head office wants to prioritize expansion in the Philippines.

Other units of PTTPCL in the region are located in Singapore, Vietnam, Laos, Cambodia, Indonesia and Myanmar.

Chawalitanon said excess capacity of PTTPCL will be exported to the Philippines, a net buyer of oil. In Thailand, PTTPLC operates some 1,200 stations and five of six refineries.

Two new gas receiving terminals are also in the planning stages to increase the distribution efficiency.

“Apart from the gas station that we are putting up, we are looking also at the expansion of our terminals,” Chawalitanon said.

PTT Philippines is looking at a new terminal in Batangas and another one in Northern Luzon.

“Our problem now is that we only have one terminal, it is in Subic. The thing worry for us is how to expand to the south of Luzon,” Chawalitanon said.

He added that PTT Philippines wants a better image as the Subic Freeport Zone’s reputation is marred by accusations of oil smuggling.

Products of PTT Philippines include lubricants, greases, diesel and gasoline for the aviation, commercial and industrial firms. Aside from its pump business in the country, the company supplies petrochemical products to local manufacturers.

The oil firm earlier expressed interest in putting up a 1,200-megawatt liquefied natural gas facility in Limay, Bataan.