PTT’s expansion, which will be carried out through its wholly-owned subsidiary PTT Philippines Inc., was an offshoot of the discussions between President Arroyo and Thailand’s Prime Minister Thaksin Shinawatra.
Perez said PTT is looking at increasing its storage capacity in the country to service growing domestic petroleum demand.
The energy chief has initiated a series of discussions with PTT officials last month to try and encourage them to expand operations in the country.
Perez will meet with his Thai counterparts to get their government’s support in this initiative.
"We are very pleased to know that PTT is looking at the possibility of expanding its operations in the country, indicating a very attractive downstream oil market in the region. Several oil companies in the country have recently been strengthening their operations as world-class import terminals. This should reinforce our long-term goal of transforming the country into a strategic oil storage terminal," Perez said.
According to Perez, the Philippine’s proximity to other ASEAN economies plays an important role into becoming a regional oil storage hub.
PTT Philippines is one of the new oil players that entered the downstream oil market upon deregulation in 1998. It is engaged in gas station retailing, bulk marketing, distributing and trading of petroleum products.
The company has also formed a joint venture with Coastal Petroleum Corp. of the US to create Subic Bay Fuels Co. Inc. (SBFCI) for the international operations of the Subic Bay oil storage terminal and another company Subic Bay Distribution, Inc. for the domestic operations.
By 2007, PTT hopes to have put up some 250 service stations throughout the country.
Perez said the deregulation of the oil industry has caused oil companies to rethink their business and marketing strategies in the country. He pointed the recent move of Caltex (Phils.) Inc. to convert its refinery in San Pascual, Batangas into a world-class storage facility. Caltex said it is investing an additional P750 million to upgrade this facility.
PTT’s move to expand operations in the Philippines, he said, is a reflection of this changing approach in marketing oil products under a deregulated market.