Bangkok--Jun 3--PTT
Responding to the country’s energy management strategy via the introduction of alternative fuels from agricultural products in order to reduce oil imports as well as bring about synergy among PTT Group and value addition in business, PTT Group steps up to be the first to offer premium-quality bio diesel.
Mr. Prasert Bunsumpun, President of PTT Public Company Limited (PTT), and Mr. Aditheb Bisalbutr, President of Thai Olefins Public Company Limited (TOC) have signed a Memorandum of Understanding (MOU) on the Sale/Purchase Agreement of Methyl Ester at 80,000 tons per year (260,000 liters per day) supplied by TOC’s subsidiary. Methyl ester produced from vegetable oil will be used as fuel additive and blended with diesel at a proportion of 5% during the preliminary stage in 2007 which can yield a production of premium-quality biodiesel of 5 million liters per day (or 33% of PTT’s total sale volume of diesel). The new product will be distributed in Bangkok and satellite provinces which consume about 3.3 million liters per day. The excess portion will be utilized in other areas. If there is supply of methyl ester, its proportion will then be increased as well as the distribution networks will also be expanded throughout the country.
Upon the joint synergy between PTT and TOC, PTT is thus Thailand’s first major oil leader in supporting the usage of alternative fuels through the introduction of premium-quality biodiesel to the market. Aside from the highest utilization of the country’s local resources, the agricultural product prices will then be uplifted. With the production of premium-quality bio diesel which meets global quality standards, the project also helps reduce air pollution while boosts efficiency of an engine run; extends engine life; and increases the cetane number. This premium-quality biodiesel can perfectly replace diesel in all models of diesel-engine automobile and machines without any modification.
The business cooperation between PTT and TOC goes in line with the government’s energy strategic management focusing on “the promoting of biodiesel” as the alternative fuel to ease the country’s energy difficulty. Importantly, it is the cooperation and value creation linkage between agricultural, petrochemical, and energy sectors committed to sustainable development.
Mr. Prasert added that PTT Group is willing to properly and continuously respond to the strategic plan in tackling the country’s energy difficulties caused by the fluctuation of oil prices. PTT also has a fully integrated biodiesel development project with the process starting from palm seedling; palm growing; palm oil manufacturing; fuel blending; and distributing of biodiesel via PTT’s service stations. The project does not only reduce foreign oil imports, but also ease air pollution problem; and at the same time, provides support to local farmers.
Corporate Public Relations Department
PTT Public Company Limited End.